How To Pay Yourself (And Taxes) in a Single Member LLC

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Title	:	How To Pay Yourself (And Taxes) in a Single Member LLC
Lasting	:	9.59
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Views	:	263 rb

What if I have a LLC and I work on independent part time projects Can I work as an infependent 1099 contractor through my LLC, but I want to show that it is my actually LLC that is earning
Comment from : Hamza Ali

You mentioned we can accurately estimate what our tax payment will be How?
Comment from : Alex Moriarty Marketing

Lets say on the first year the LLC incurred a loss of $50K, no other income on 1040, how would that affect taxes?
Comment from : Ytnew

This is a fantastic video It's clear and easy to understand your explanations Thank you for providing this information
Comment from : Aryana Smith

If I pay myself in a form of a check Can I use that as a write off?
Comment from : RJ

Very good, easy to understand video Thank you!
Comment from : wannaknow

It is amazing how you can watch so many videos and still be confused because other creators try and cover too much I just wanted to know about single owner LLC Nothing more and this video was the first one that make it clear and simple
Comment from : too-da-loo

Can I file separately if i am a single LLC member business Because if i file it along my Job W2, I can get audit for both which i absolutely don’t want to Help! Thanks
Comment from : E Thang

Thanks for sharing, this is helpful How is this different from having a 1099? I do work on the side and get paid with W-2, thinking on opening an LLC as I heard it could save me $, but still don't get the difference
Comment from : Yoismel Perez

And how I pay taxes on the check I send to myself? Do I need to add that to my revenue? It's not said
Comment from : Nico Menci

For a more realistic scenario, what if your in business for a couple of years and the first year you declared a loss and the second year you broke even Do you not pay yourself anything in those 2 years?
Comment from : Scott Elgart

if i just transfer money from my business account to my personal using my Chase app is that the same as writing a check?
Comment from : 3191birdhouse

This video was very helpful
Comment from : Morgan Pound

what if you want to leave a balance in the LLC so it's not 0 after you pay yourself?
Comment from : freeNode5

Excellent video Very clear and understandable
Comment from : Gunners Alive

I was told that I should take at least 25 of my business income to pay myself Is this correct?
Comment from : Trina EppsTrinaE

Thank you!
Comment from : Neutral

Hey Chad, great video! Is this all true even if my single member LLC has its own EIN?
Comment from : Monty Williams

What about self employment taxes?
Comment from : Paul Mieczkowski

My payroll taxes are fucking 2k… how to make it stopppppppp…
Comment from : Dynamic Speed

Could u do a video with someone who has a single person llc but they are single work full time and have a side business
Comment from : alexuss123

Hey Chad so quick question for you , let's say I have A-day job and I have A 401K with my employer And I max it for the year I have a side hustle and I create a Single person LLC Am I eligible to create An Additional retirement plan such as a SEP IRA?
Comment from : Malik Maraheel

Love this explanation! I can’t tell you how many videos I’ve watched & this is only 9 mins too You kept my attention & taught me something valuable & extremely needed & helpful thank you 🙏🏼😎👍🏻
Comment from : Natalia Quintana

So you DO NOT file a LLC tax return?
Comment from : David

So you can’t file separately seems like if you get sued they know how much you make with everything
Comment from : Devoy Williams

I had an accountant tell me to write myself a physical check or use to use zelle, but to not simply transfer money from business checking to personal checking, that doing so could pierce the veil
Comment from : Molly Ringwerm

Great presentation Do you think one of the reasons you can't pay yourself a salary as a single member llc is because this would put employer taxes on that salary into the wages on your schedule C thereby reducing your profit? In effect, using taxes to lower your taxable income
Comment from : Mark Stevens

This was the most simplistic explanation I have seen on paying yourself from an LLC Thanks!
Comment from : Robert Fulton

If only I had watched this before deciding to use a payroll processor While all along thinking I was doing the right thing, filing 941s each quarter, little did I know the 1040 Schedule C side of the IRS would have no visibility of these filings or paymentsit appears the choices are to either not use the payroll processor (which results in 941s) or continue doing that and file a completely separate tax return instead of showing the business income on 1040 Schedule C Does this seem correct?
Comment from : B L

This video answered so many of my questions 4 months into my LLC business I have a quick question on an excise tax for a construction business in Washington state, would it fall under retail sales?
Comment from : Anthony Lopez-Colton

What if i currently have an active LLC with no sales tax ? (i never made any sales) But i don’t want to dissolve my LLC just yet 🤔
Comment from : Latifah Shakur

Thank you just beginning to form I want to have all my operations in order
Comment from : Munchkin M

Super relieving to watch
Comment from : 800+ MyCredit

Wow, I can’t concentrate on your words cuz the music is so repetitive and distracting
Comment from : Heather Mitchell

Do you have a video on how to pay yourself in a multi-member LLC?
Comment from : Draco Garage

Can I keep the money in the llcd
Comment from : TheBlessedGodrick

So you mean to tell me donald trump figured this out too and is pimping the game lmao
Comment from : LeeYanFet77

👏🏻👏🏻👏🏻 can you recommend me a app to track my business as a self employed, thanks! ( new on this )
Comment from : Nicolas

Great info!! But that music , lord Can it be any more annoying? Sorry
Comment from : Jay Reszy

This is the BEST, most straightforward explanation that I needed! Thank you!
Comment from : Mrs Rogers’ Neighborhood

Say if your bank don’t issue checks, What’s another way for me to pay myself
Comment from : Dafina Brooks

That diagram is a mess, and that music is distracting
Comment from : Randamo

taxes suck, I'm moving
Comment from : Jackson Lee

Thank you so much ❤
Comment from : Kayla H

Thanks so much for this information Question, when I add in my expenses for the year, will the taxes that I owe be less?
Comment from : ORAN BOOKER

Cheers Chad, I have doubt Can i create SMLLC and take payments from companies outside USA for consultation
Comment from : DHIRAJ KATEKAR

Do you pay taxes on the payment you make to yourself ?
Comment from : Emmanuel DeFelipe

can you explain charitable contributions if done by personal & business accounts please ?
Comment from : driver

Does the loss from the schedule C offset w2 liability?
Comment from : cutiemel91

Can you explain this as a single person
Comment from : Sean Ramkay

Hi, I saw a couple of videos from another channel and they keep mentioning self employment taxes Note: I am not a US resident nor citizen Do I need to pay self employment taxes and how does that work? Thanks
Comment from : StraightCheeks

thanks but what if I write myself a chq of 60K, not 100k in your example, which to be added into the schedule C, my question is what about the 40k that still sits in my business account, how do I pay tax on the 40k? thank you 🙏
Comment from : Janet Yao

@Chad Pavel, Thank you for the clarification, however One thing I dont understand, you saying pay tax on profit, But usually business also keep emergency reserve funds for first 3-6 months of business, how do you adjust that because those are considered operating expense I do need a balance to run the business which includes rent, utility, inventory etc(For example, my monthly operating expense is 10k and I need to buy 30K inv from 100k profit) Shouldn't business pay 60k tax on the income which they are paying to employee to themselves rather than all the profit?
Comment from : jacky goland

So how much can I deduct?? Can I take the individual deduction of $13,850? Im not filing as a business just llc 100 single owner or do I have to deduct $5,000 business start up? Please help !
Comment from : Gretchen

Great, thanks for this One question, do I need an EIN to pay myself if I'm the only person in my LLC? Or do I only need it once I hire some employees?
Comment from : Lyonardo

Hi Chad,brbrCan we do a direct deposit or some type of electronic deposit into our personal account from the business LLC account instead of writing a check? If so, do we need to add any type of literate on those deposits?
Comment from : M T

Everyone seems to think you get extra tax breaks having an LLC but it’s simply not true They also think that you pay less taxes cuz you write off stuff lol which also not true! You get taxed more being a 1099 You pay 153 self employment tax plus state and federal taxes which also depends on you tax bracket which could mean you’d pay maybe 40 of your income !
Comment from : Lakers!

Yes! THANK YOU FOR THIS!!!!
Comment from : Eddie G

Chad, I created an LLC, purchased items for the business but due to repairs and other issues, I wasn't able to utilize the equipment I purchased in the year I made the LLC and the purchase of the equipment Can I still depreciate that equipment in the year I made the purchase but wasn't able to use?
Comment from : Mike Czar

If I write myself a check or venmo my business 1 to 5k as a start up loan can I use that as a deduction from profits I wouldn't count that as profits since it was a loan I have to pay myself back correct?
Comment from : SoundMoneyRecordsllc

What about Self-Employment Tax?
Comment from : Ben Patterson

Thank you so much for this!brI made myself an "employee" with my single member LLC and was paying myself as an employee and having taxes taken out that way brThank you for this explanation!❤❤❤
Comment from : Annette Asbury

This information is gold! Thank you for sharing
Comment from : Rizkarina Angrenani

Thank you for making it so simple to understand
Comment from : Rosy Ray

I’m a bit lost but have gotten more clarity When I send money from my business acc to my personal, do I deduct taxes again from what I sent myself?
Comment from : Masahico Torres

What if you only paid yourself, $50,000 of the profit from the business, and left the other $50,000 in profit in the business? Would you still need to pay tax on the $50,000 in profit you left in the business?
Comment from : Eric Bronk

What about the self employment tax?
Comment from : Jerry Davies

i really don't understant this that you don't have to pey federal tax on the money coming from llc ,cause i do pay federal taxes on the ordinar income from llc partnership and it the same i thnik
Comment from : Minaphil construction Llc

This is an amazing video man, thank you Simplicity is king
Comment from : Michael Howes

Making money is an actionkeeping money is a behaviour, but "Growing money is wisdom" I figured this out a week ago*💥
Comment from : Johnson Charles

The music is too loud and distracting I like it otherwise
Comment from : Habits Of A Nutritionist

Thank you chad
Comment from : R B

@chadpavel how do we show proof of income though at a dealership? They want w2’s I couldn’t even get an apartment and I was doing exactly what you said in this video
Comment from : Loulou09

So there is no tax benefit by setting up your own LLC (was hoping to pay company tax instead of individual tax)
Comment from : inter stella

Thank you for explaining this in a simple and understandable way Are there thresholds on the minimum income of an LLC to file taxes? and also one more question, what if you break even the first year between expenses and income? do you still file taxes? (super new at navigating all of this)
Comment from : Annalisa J

You have any videos on the ins and outs of having a 1099 misc contractor helping you out?
Comment from : Matt Velderman

Hey, should you make a certain amount of money before you get an LLC ?
Comment from : Alexus Love Beauty

hello very informative thank you!! How do u pay taxes for what u paid yourself from checks ?
Comment from : Marvin March

I paid someone earlier this year a check through Quick books I already reconciled that month How do I convert them to a 1099 vendor? Do I have to wait until after Jan 1st?
Comment from : Gerardo

I have a question relating to the profits of the business; what if cost of startup put me at a loss? brI'm a single member llc, formation was November of this year and I'm assuming once the year ends I'll have to file taxes for the business and myself brbrThe business lost money, and I made very little as a result of an accident in March of this year due to someone's negligence brbrAny advice?
Comment from : High Vibe Gardens

He said you put 200k in your business account, you spent 100k to run the business and you left with 100k profit… How is that “profit”?? It’s not profit if it’s not extra money from what you initially put in, that’s the same 100k you initially put in how is it profit? Somebody please explain
Comment from : Untame

Hi, this is hopefully not a dumb question 🙃 Are you saying that we only pay the required/quarterly business tax to our state, and the federal tax is based on personal, non-business filing?
Comment from : ErinRose Winter

Thanks for the clear explanation! I'm about to open a single member LLC in a few days, but I'm an American citizen living and teaching overseas You mentioned that "non US persons" might face more complexity Does that apply to me?
Comment from : Andrew Norman

Lost me at 7min
Comment from : Trill Will

Music is annoying
Comment from : Omar H

How much u pay tax if my net imcom 80k on single llc
Comment from : DZ Transportation LLC

As an SMLLC, can I charge my customer by the hour for engineering design work, much like an attorney would invoice at an hourly rate for legal services? I would submit a weekly or bi-weekly log
Comment from : Seth Taylor

You just cleared up so much for me, literally wrapping up 1st year and you answered so many questions I had thank you
Comment from : A-1 Lawn Care

How are Social security (payroll taxes) paid on the money paid to me from the LLC?
Comment from : Seth Taylor

Nice video If I start my business and do not take any pay from my LLC for the entire year, am I expected to pay or file taxes?
Comment from : Ochicoloto

You pay taxes with your schedule c, and the IRS extracts from that single payment a state income tax, medicare tax, federal income tax and social security tax Use an llc tax calculator online to find your taxes per state and net income amount
Comment from : Matt Hawksworth

What if I am putting money down my own money from my Personal account to fund my llc Does that change anything in taxes after I make money on the company when I pay taxes
Comment from : joe valde

Stopped watching after a few secondsjust a tip, turn the background music off It's distracting I don't understand why so many people add background music in their videos
Comment from : Brandon Wilson