How Do You Pay Yourself as the Owner of the Business?

As a single member LLC you do not pay yourself a salary with a pay stub and payroll tax withholding. No no… You pay yourself an Owner’s Draw. Owner’s Draw that you set aside 15.3% for Self Employment Tax which covers your Social Security and Medicare. Then you report your end of the year Income in your 1040 schedule C.

DIY BookkeepingBookkeeping Network LLCJuly 10, 2020llc, scorp, c-corp, payroll, salary, wage, w2, owner's draw, self employment tax, K1, 1040Comment