Quick Answer: Can You Pay Yourself If You Own An LLC?

How do you pay yourself when you own an LLC?

As the owner of a single-member LLC, you don’t get paid a salary or wages.

Instead, you pay yourself by taking money out of the LLC’s profits as needed.

That’s called an owner’s draw.

You can simply write yourself a check or transfer the money from your LLC’s bank account to your personal bank account.

Do I have to pay myself from my LLC?

To be able to pay yourself wages or a salary from your single member LLC or other LLC, you must be actively working in the business. You need to have an actual role with real responsibilities as an LLC owner.

Can the owner of an LLC be paid as an employee?

The owners of the LLC, however, aren’t employees of the business and therefore can’t be paid wages — sometimes called “W-2 income” after the federal form that reports such pay. The exception is when the LLC chooses to be treated as a corporation for tax purposes.

Can an LLC be an independent contractor?

An independent contractor is considered a sole proprietor if he is not registered as any type of business entity with the IRS, such as an LLC or partnership. When making out contracts with companies that will become clients, the company will be doing business directly with you as a contractor and not your business.