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How to Pay Yourself in a Single Member LLC

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In today's video, I share with you the proper method to pay yourself if you own a Single Member LLC. Single Member LLC's are one of the most powerful and flexible legal entities that most online entrepreneurs use to protect not only their business, but also their personal assets.
However, if you don't set up the LLC properly, it won't provide you any protection at all.
Today we talk about how to pay yourself if you have set up a Single Member LLC. This will be especially helpful for you solopreneurs out there who are building businesses on the side.
I've written a more in depth blog post on this issue at my website:
bit.ly/2a2GMYy
Some of the links below are affiliate links. If you purchase through these links, it won't cost you any additional cash, but it will help to support my channel. Thanks!
To start your own LLC, click here: hawthornlaw.net...
Click here for an operating agreement template that you can use for your LLC: www.hawthornlaw...
If you need to get a hold of me, you can schedule a call using this link: www.hawthornla...
*Unless you are a legal or private coaching client, I do NOT respond to emails or contact form submissions.*
To sign up with a payroll service I use and love, click here: hawthornlaw.net...
Need more information on starting a business? Download our cheatsheet here: www.hawthornla...
Want the Ultimate Business Building Checklist? Click here: www.hawthornla...
I use Vidiq to optimize my videos, here is an affiliate link if you would like to support me and sign up for their free plugin:
This video is for entertainment and informational purposes ONLY and should NOT be considered legal advice. By watching a video or commenting on a video, we are not forming an attorney-client relationship. If you need specific legal advice, please ask an attorney in your state.

Опубликовано:

27 июл 2016

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Комментарии : 531

@jimhart 5 лет назад

Thank you for watching! I just announced a new FREE training that reviews the exact 10 Step Process I use for starting an Online Business: www.obfoundations.com/10steps

@FreeTraderFREEMAN 5 лет назад

Can you create a LLC when you are a stock market trader?

@angellove8233 5 лет назад

Aw man very good video thanks

@moneyfindersllc6236 5 лет назад

Can you go over how you pay yourself in an "S Corp" scenario?? I know you did a talk for the Single Member LLC. Thanks!

@alexrileyfoxhound5453 5 лет назад

Hawthorn Law In a single member LLC are you tax on gross sales or, after all business expenses, net sales?

@overthis 4 года назад

If your LLC gets a fine, and it bankrupts it, what is your personal liability?

@houstonlady031 5 лет назад

Your videos are very informative and straight to the point. Thank you so much for helping us small business owners, I also appreciate the simplicity of your explanations. I never leave your sight wondering... and for whatever reason if I do have a question, guess what? You made a video for that too

@soto7774 6 лет назад

Got an LLC for a t shirt business, I’ve been too busy to get started. Since I’ve bought the equipment little by little and I work 70 hrs a week. I don’t know what to file since I’ve actually not made any money yet.

@Stealthyz420 3 года назад

did your biz succeed?

@rufus5208 3 года назад

How has your business performed?

@davidasholesjr181 4 года назад

Thank you. You just confirmed that I need an accountant

@BTFOOMNY 4 года назад

good answer.

@avader5 7 лет назад

Thank you for this video it reminded me of back in 1992 when I began working in the computer industry I wanted to incorporate and looked around at various ways to do that. I was at a meeting with the IRS where a fellow engineer had formed a K Corporation and it was the worst thing he could have done for various reasons, mainly Healthcare options. I then began to do research for the companies that I would work for and I found some striking similarities that Intel, Oracle, IBM, Microsoft, McAfee, all of the Silicon Valley companies except Hewlett-Packard back then were C corporations based in Delaware. I found a place that would incorporate me as a C corporation for $300 and I Incorporated. It was a great learning experience I will also never forget the day that Intuit threatened to sue me when I reverse-engineered their QuickBooks Pro database to fix a bug in their program regarding employee training tax! The other humorous moment that sticks in my mind is when my contract at Intel had finished and I went to collect unemployment at the local EDD office she asked me what happened I said those horrible corporate moguls let me go! We then commiserated for a few minutes I didn't have the guts to tell her I was talking about myself! Even though I realize now there was some minor double taxation which I minimized it was still a great ride!

@overthinkerblue4637 4 года назад

I’m still confused. 🤪

@lostintime8651 4 года назад

1:30 that's a check. Slow down I'm taking notes...

@howardOKC 4 года назад

I am still waiting on you finishing the notes

@therealkato7958 10 месяцев назад

Wow, Jim, I'm very glad that I chose your video. You are very informative. I might have a few questions. Here maybe within a few days or so. But I am trying to start my own LLC Business.

@jimhart 10 месяцев назад

Glad it was helpful!

@luthartlearning6304 5 лет назад

Thank you so much for all your great information! I will definetly consider booking a call with you as your fee is very reasonable, and you are knowledgeable and sincere. I just formed a single member LLC and yes its for ECommerce.

@BTFOOMNY 4 года назад

talk to a local CPA as soon as possible. You will probably have to collect sales taxes on the sales in your state. That means you need to register and file sales tax reports.

@Khmerpride2013 7 лет назад

Could you make a video about LLC file taxes? such as payroll taxes? thank you

@sethmacomber3497 7 лет назад

Hong Sok There is no need for payroll taxes if you're paying yourself in a single member LLC.

@sethmacomber3497 7 лет назад

they better not have a c corp lol that would be horrible haha s-corp would be good though

@raseanpowell5695 6 лет назад

Honest Sok

@jimhart 6 лет назад

If you elect S-Corp status you may need to pay yourself a salary.

@cinnamonbagel5914 6 лет назад

Hong Sok I would like to know as well

@jeffchapman9867 5 лет назад

Thanks. You make me feel better. I thought I was ripping myself off on my taxes by not having a s corp for all these years. 35k to 50k net income is reasonable salary at the minimum. Nobody else has that answer. 👍🏻

@jimhart 5 лет назад

You're welcome Jeff! Thanks for the comments.

@sbates189 5 лет назад

Due to your recommendation, I purchased Profit First. Thanks for this great info, and the solid book recommendation.

@jimhart 5 лет назад

Yeah - it's a good one!

@hypnoliz 3 года назад

Awesome videos!!! Quick, clear, and to the point. Really appreciate this advice! Especially from an attorney!

@br3wskee 7 лет назад

Wow. I paid a guy $300 for this info a few months ago. Smh 😩

@sophisticatedlady6352 4 года назад

br3wskee 🤫🤫🤫🤫🤫

@sirshortsalot117 4 года назад

Yeah that's accountants for you every minute is billable.

@xlClampy 3 года назад

Evil Ghandi dude why are u mad

@sirshortsalot117 3 года назад

@Evil Ghandi Well they might as well be fast food employees cause they just got this info for free. So the $300 might not have been worth it.

@sirshortsalot117 3 года назад

@Evil Ghandi I understand free market and that's why this dude on youtube giving free advice quicker and better than what a scheduled in person, and potentially unhelpful appointment is. I want more market competition with lower prices and better service so that would be a no for Biden. Nothin for nothing. Don't worry I'll still be paying my competent accountant a nice fee for his expertise this april. Not trying to discredit but there are some situations where free RU-vid is better and others where you need the pro no doubt.

@TheArcticWonder 4 года назад

Thank you for making these videos. I'm in the process of buying a bunch of books (including Small Business for Dummies), watching a bunch of videos and generally informing myself to the best of my ability in preparation to form a business. This type of content really helps me. I gave the thumbs up!

@JerryJrsGarage 7 лет назад

Excellent informative video. I like how you mentioned a threshold for S corp netting etc. Many people will start to learn from this video.

@FranklinLiranzo 5 лет назад

thanks for the valuable information!! may you consider doing a video on How to Operate a small business as a veteran owned business??

@davidbehrens4858 3 года назад

I'm confused, under a Sole Member LLC, wouldn't you get taxed on all profits, not just those you put into an "expense" Account?

@syncereevans8906 4 года назад

thanks for your video I just switch my company from S-Corporation to Llc . I was told Llc is better.

@SamuelBacoteBey 6 лет назад

So the LLC needs to have 3 business accounts: Expense, Taxes and Profit. To avoid a high tax on all profits, what is needed?

@Inspirationhills 4 года назад

I really appreciate you speaking about Profit First, I think it's a book/syster everyone should know about.

@thelandofliquidations418 3 года назад

Hi, thank you all your information, very knowledgeable. I learn so much. I am from Cleveland Ohio and and I am look for e-commerce CPA. Could you please recommend a person for our community. We are LLC now, but we have to search to corporation next year. Thank you

@bassstudent4life 5 лет назад

i wish there was a way to pay yourself distribution through intuit payroll. Great content and straight to the point man. Worth subscribing for sure.

@jimhart 5 лет назад

I think you can do that too. I was just illustrating how easy it is to pay yourself with an LLC.

@SouthpawAutoworks 4 года назад

So, this is why I was having to file quarterly. Thank you for the education. Great video!!

@wildandwackywade 3 года назад

I've learned a lot and I recently am a new subscriber. I noticed a lot of times in your videos you talk about S corporation and LLC I'm not sure what really those mean or if they're any different from regular incorporation or regular proprietorship.. I would like to have more details on what these letters and types of businesses are.

@justinfreeman4614 6 лет назад

Hot damn! I'm definitely calling you when I need help. I live in FL!

@stylzgohardvip 3 года назад

MAN, I COULD HV LISTEN TO U ALL DAY ON DAT NOTE !¡

@hitman17021 7 лет назад

Great advice Mr. Hawthorne. I always thought about paying myself and I didn't know how to now I know.

@nicoleforbes876 7 лет назад

BIG DICK WILLY d thanks but no thanks. I'm doing very well!

@haviporaqui6332 7 лет назад

She's a cutie

@hitman17021 7 лет назад

Havi Por Aqui thanks

@jimhart 6 лет назад

Thank you!

@mycreations318 3 года назад

Amazing video… Thank you so much for this really insightful information! God I needed to hear this❤️💯👍

@phobiaophobia 6 лет назад

Thank you Matt Damon

@lostintime8651 4 года назад

I guess they cut out the fighting seen.

@martalazo3189 7 лет назад

thank you for taking your time and sharing this information I do appreciate it.

@elisawhitney5599 4 года назад

I’m so glad I found you! Thank you so much for your videos! They’re very helpful

@oceanford4157 4 года назад

I lost you when you said that I need another bank account to pay myself and I need another eim number for that. I appreciate your videos

@heinaye3594 4 года назад

LLC is considered a separate entity. If you're using your personal bank account and EIN for the LLC, the corporate veil will be pierced which defeats the purpose of having the LLC.

@yocreason 3 года назад

@@heinaye3594 so just to confirm, If I have a business account with and EIN and LLC, then I can pay myself into my personal act 2/month. I only need ONE EIN right?

@heinaye3594 3 года назад

@@yocreason if you're asking if you only need one EIN for each LLC, then yes. You can pay yourself any number of times you like, just make sure that the income from the business doesn't go to your personal account directly.

@randythemobilehomeguy3715 5 лет назад

Thank you sir! You were very helpful. I needed someone to break down how to pay yourself...not knowing what items should be withheld; taxes, owners profit. I am very new to running my own business. Are there forms out there that will help you see what percentage you should be withholding? Or samples to learn off of?

@allaspectsrc4178 5 лет назад

Thank you for posting all this ..I just formed my LLC I sell food and I really need as much info on how to run the business side of things ..thanks again

@jimhart 5 лет назад

Thank you Otis! What specifically are you looking for information on so I can try to answer more of your questions?

@allaspectsrc4178 5 лет назад

@@jimhart mostly the tax stuff I'm trying to understand the tax stuff in California

@jimhart 5 лет назад

I'm guessing you have a lot of regulations that you need to be aware of selling food in California.

@adamm2851 6 лет назад

This is why lawyers should stick to law and leave finance and accounting to CPA's he is on the right track but getting things seriously wrong, to start a single member llc is a schedule C disregarded entity you can't "pay yourself" it all goes to your 1040 either as Schedule C income or as a 1099 issued from the schedule C to yourself, same tax result. If you file an S-election as an LLC then you can setup payroll and have the corporation pickup half the payroll taxes as an expense and you issue yourself a W-2. This is part of the reason I hate lawyers, they get paid a ton and are not very bright.

@taxmatters6150 5 лет назад

There is no need to issue a 1099 from Sch C since it will go back into the same Tax Return. Single LLC only protects your assets but concerning Tax Return you will only add a Sch C to your return as any self-employed person.

@assjulio79 5 лет назад

Liam O’Neil NO! Lol but ok🤗😂

@assjulio79 5 лет назад

Liam O’Neil You’re referring to the S-Corp model.

@assjulio79 5 лет назад

Liam O’Neil Wrong, “distributions” are ONLY allocated in the S-Corp model. For fucks sake. *youtube accountants beware 🚨

@tashirobinson5661 5 лет назад

Adam Mohr, you can indeed pay yourself as a sole member llc! Whatever portion you pay yourself is w2 income that’s deducted from your business income when you file your taxes.

@economiclifestyleinvesting9884 4 года назад

I am a single member LLC for a rental property. When the rental income goes to my business checkings and I write a check to myself, will I get taxed for that at end of year?

@BiggiePoppins 7 лет назад

thank you for speaking clearly and staying on point, you're awesome at explaining this. keep it up :)

@kurtmohnsam7588 4 года назад

So I've set up an LLC, paid the fees to the state, paid for checks, paid a lot of mileage traveling to potential customers, etc. etc. but the LLC has not made any money yet. How do I handle the money that I am "advancing" to the LLC to get it up and running? Do I need to put funds of my own into the LLC's bank account to pay myself those expenses back? How do I best handle this?

@mislandi10 4 года назад

Kurt Mohnsam great question.

@BTFOOMNY 4 года назад

The mony you have "invested" is your capital. You need an accountant NOW.

@newbuddy6w181 6 лет назад

So for an LLC, since LLC has to pay self-employment tax of 15% on gross income, with the way you allocate money into 4 separate accounts described in this video, which I think is a great way to do it, besides allocating that 20% of 30% of your Expenses account for paying tax, shouldn't we add another 15% for self-employment tax? Thank you.

@tammyramirez7371 5 лет назад

Love the videos keep them coming, just joined the notification squad

@jimhart 5 лет назад

Thanks Tammy! I’ve been taking some time off this summer but will be back at it when kids go back to school!

@Mangold2865 Год назад

What 4 bank accounts would you recommend for single member llc? 1)personal checking (already have) 2)? 3)? 4)? Would greatly appreciate your feedback

@jimhart Год назад

1. Operating 2. Owner Pay 3. Tax 4. Profit

@markliberatore6377 7 лет назад

great stuff man. thanks. as a newly LLC i will definitely consider this as well as your business.

@CornbreadMillionaireLifestyle 4 года назад

Thank you for this super helpful video! I'm doing research on LLC's. Your video popped up on my home page.

@a1no1x 3 года назад

Ok, so let me see if I get this correct. For my company, let's say company A. So A's taxable income is ONLY what is left AFTER expenses. To include, paying the single member. So let's say 20k gross, -13k operating expenses (which includes paying the single member) leaving 7k which will get taxes at the end of the year?

@youngkey3051 3 года назад

Hawthorn Hacks.... that’s a good name for your show

@TheeHerbJunkie Месяц назад

Thank you very informative

@jimhart Месяц назад

Glad it was helpful!

@jrb-yz6jt 4 года назад

This is probably a really stupid question, but please forgive me. Let’s say you create a business, put 25% down and finance the remainder. Will the loan institution allow you to pay yourself or family a salary? I didn’t know if the loan had to be paid off first or not. Thank you!

@Logisticwellness 6 лет назад

Great video! Thank you so much for the break down of accounts! Love the sip at the end too lol

@jimhart 6 лет назад

You're welcome!

@brucefrederick3217 5 лет назад

I am 63 and receiving benefits. I work full time and they are withholding 3 months of benefits. My full time job may be in question, so I would like to start a side business in case the job goes away. I read on the internet that if you start a single member LLC that you could withdrawn money as a distribution of assets in stead of a wage, it would not show as gross income on your w2 form. Is this true?

@BTFOOMNY 4 года назад

It's true, but it shows up on Schedule C. Still taxable income on Form 1040, just different line.

@rvingmontanezway103 4 года назад

Great awesome video 👍

@jasonsignor7237 2 года назад

3:44 to 4:37 I'm quite confused. So, let's say I earn $1,000 in a month in a single member LLC, disregarded entity. Should I not set aside 15.3% of that for tax, which would be $153? Even with Profit First?

@gabe1929 7 лет назад

5 seconds into this video, love it already "hey there party people" haha ; thanks for advice in rest of video!

@jimhart 5 лет назад

Welcome aboard Gabe S! I just want to let you know that if you have any questions or a topic that you want me to make a video about, just include the hashtag #hawthornlaw in your comment and I'll see what I can do! If you haven't already, please check out my channel to see all of the topics that I have covered so far: ru-vid.com/show-UC6t5e6r-JEVoz_yn6SdvLRw I look forward to seeing you on the channel!

@yocreason 3 года назад

Hey thanks so much for these videos. I am starting a Epoxy countertop and Table business and I'm using Legal Zoom to get my paperwork completed. But I have no idea how to pay myself or how much. Also, my expenses will largely be materials from Home Depot and an online distributer. Should I get a business credit card and then pay from my business account every month?

@neverlookingdwn 7 лет назад

When he left to grab a check and says fill it out and pay yourself. LOL LOL LOL LOL! I officially hit the like button and subscribed. Seriously...who doesn't subscribe after that! Love it!

@joyceloaiza9145 5 лет назад

Hi Jim, My son and I started our LLC partnership in Feb 2019. We will be making 50k+ year. Should we be S Corp? Is it within 75 days of getting LLC. Or can we become S Corp later? And do we need a lawyer to write something up for partnership? We both work for company and have one employee. Do we pay ourselves certain amt or just hours we work? Lot to know. I appreciate your advice. Joyce

@jimhart 5 лет назад

Let me know if you would like to schedule a call to discuss. www.hawthornlaw.net/contact-us/

@redman9113 5 лет назад

Can I please email you for advice on your situation?

@williamray9555 5 лет назад

Can you do a video with specific focus on S-corp paying yourself, tax, and other legal nuance please?

@jimhart 5 лет назад

Hi William - Thanks for the suggestion! I'll add it to the list of videos I'm working on.

@fernandogomez83 5 лет назад

Thank you very much for the information in this video.

@totallysafe 4 года назад

There’s your tagline!! Hawthorn Law here to protect your legal butts”

@ZovniaO 5 лет назад

great info. thanks a lot for making those videos

@jimhart 5 лет назад

You're welcome!

@3000isreal 5 лет назад

I'm listening, keep it coming, thank you! !

@jimhart 5 лет назад

Thanks!

@thatguyonguitar5575 2 года назад

boy do i have the biz plan and a whopper of one. i get frustrated by all the loops and roadblocks constantly with this. I'm looking for a mentor or someone to help me properly and successfully at starting the dream that helps everybody... imagine everyone who yearns for music but cannot get it would be awarded a guitar, only eligibility requirement is that you love to play or love music. I'm changing the world, and that's not even close to what I'm going to do before I'm done. the smartest thing to do with me (if you know how to do the process) is guide me through all the dense stuff. ill reward that person indefinitely.. ,maybe tell me someone who would. I'm taking this all the way.. big$$$$$$$$$$

@danielgodo1107 7 лет назад

you guys have to keep posting, much more about Corps etc

@SoulScribbler 7 лет назад

The owner's profit account is still technically money that the company is holding, correct? I'm actually taking a small business accounting class right now, but it's from the accountant's point of view, not the owner so it's still a little confusing how things will work. I also have a few more questions, but noticed you've stopped doing videos, so not sure if you're actually around to answer questions any more =)

@jimhart 5 лет назад

Hi My Almost Relevant Life - I'm sorry it has taken me so long to respond to you. I wanted to let you know that I've started posting new videos to the channel, so if you are still working on your online business, hopefully you will find my recent videos helpful!

@Super29127 4 года назад

1) What apps do.you recommend in tracking expenses & tax obligations when doing online businesses such as ecommerce, Amazon FBA, POD, Affiliate Marketing?

@blankitagino9442 6 лет назад

This is so so helpful thank you !

@jimhart 6 лет назад

You are very welcome!

@Gallagur-xz6fr 7 лет назад

Did you say to allocate your estimated tax liability based on a percentage or your expenses? Don't you mean allocate based on your earnings AFTER expenses? That is, on your net, taxable income... I am very confused.

@anajalal1 7 лет назад

Gallagur you're correct, he is wrong/made an error

@jimhart 6 лет назад

If you are allocating your estimated tax liability on a percentage of your gross, then the percentage will be smaller than if you allocate based on your net earnings.

@natasharaymond2105 4 года назад

Thank you so much for the information I so needed that course!

@dennisestessr918 6 лет назад

Hi Jim. First, thanks for all your informative videos! I've learned a lot! Secondly, while you were discussing that 'profit first' method, you spoke of categories how you could safely manage all money coming in. I caught the 30% for op expenses, and the 3-6% for taxes, i think it was. What are the other recommended categories? Thanks again!!

@JJCGCAZ 4 года назад

Thank you Sr for all that great information, has been really helpful!!👍🏽

@joeszabo4237 6 лет назад

Thank you for this information. I am currently collecting N.J. unemployment benefits. I want to start my own business. Am I able to become a LLC while on unemployment? Thanks again for this video.

@jimhart 6 лет назад

Hi Joe - I don't see any reason why you can't form the LLC, but if you were to collect an income while on unemployment you would need to report that. Check with a lawyer in New Jersey.

@dolapofox7584 2 года назад

Hey Jim, thank you explaining in details. I just formed my LLC in my home state in Delaware. I am an independent contractor, but some of my employers insist on paying me directly, and not my company. They say they hire me and some my company. Would it be okay to deposit my check into the LLC account? Thank you.

@zillaman0916 2 года назад

Great question. I sure hope he or somebody answers... Sure would be nice to know.

@version2media 5 лет назад

what if host 2 events per year (as a single member llc) january & july. when would i have to file my taxes? quarterly or is there a once per year "at the end of the year" option? since i'll have a 6 month gap without no income // 8 overall months without business income.

@jimhart 5 лет назад

Every situation is different. I would talk to an accountant.

@iamology415 5 лет назад

Thank You Very Much, Brother, Good Stuff!!!!!!

@jimhart 5 лет назад

You're welcome!

@yodo7571 4 года назад

Very informative video and helpful tax tips on doing this as an LLC vs. a S-Corp.

@DrezNoir 4 года назад

#hawthornlaw what software do you recommend using when you have LLC for accounting and tax purpose?

@jodiewilson5456 7 лет назад

If you are a single member LLC, and your business grosses $300,000, when you apply for a loan such as a mortgage, and the bank request your tax return, does it appear that you have a $300,000 salary to the bank?

@2awesome292 7 лет назад

You only pay taxes on profit, which would be your income; unless you have no expenses, you won't have 300k income from 300k gross

@uria702 6 лет назад

Jodie Wilson what you have in the bank doesn't matter. The profit you make in the llc is what you'll be taxed on and what will be used to determine your eligibility

@jimhart 6 лет назад

I just went through this - different banks have different rules for how they will calculate your income. If you are self-employed, they generally want to see your income for the past 2 years. But talk to a loan officer to find out what you will need to apply for your mortgage.

@beingthebeststep-parentyou9732 4 года назад

Thanks for this great information it’s really helpful. God bless you 🙏😊❤️

@biancagriffin8501 4 года назад

Thank you for this wealth of information. Is it ever better to choose sole proprietor status? What are the benefits of choosing a sole proprietorship?

@sc4894 7 лет назад

im a film maker and designer I just formed an LLC and opened a business account please give me any advice

@raganmartin 4 года назад

Very useful Info. Direct to the point.

@marketbuy 4 года назад

Why not just write a payroll check with self employment taxes for LLC? Use the employment taxes as a business expense write offs?

@Jascensionvoid 7 лет назад

Hi. So when I write a check from my business to me for some spending money in the note section of the check I just write member distribution? Correct? Now I use Quicken to keep track of everything. What would I list paying myself as in Quicken? Would be considered an expense to my business? What do I put for the memo and category. So confused :-(

@1Dcorace 3 года назад

Have you ever done a video on integrating personally owned assets into an LLC or S-Corp?

@grantellis8464 3 года назад

Couldn't you do an ACH transfer instead of writing a check? I'd rather not wait 5 business days for the check to process when I can just immediately transfer it. Let me know. Thanks.

@minidocstv3339 7 лет назад

Can you pay yourself via direct deposit?

@patopat2818 6 лет назад

Yes, as long as the funds are being transferred from your business account (tied to your EIN #) to your personal account (tied to your personal social).

@jimhart 6 лет назад

Of Course! I use ADP.

@lovesautodetail 7 лет назад

Awesome video thanks! I subscribed.

@marketbuy 4 года назад

Hi Jim, I’m a Single member LLC. I’ve been paying myself $3K/month with a W-2 instead of paid distribution as the way you described it. I pay quarterly state and federal employment taxes. Is this wrong? Furthermore, my gross receipts have reached beyond the $250K threshold. Currently, I pay $800 LLC tax, and it looks like I may have to pay $900 LLC fee in CA. Would I be better off to do S Corp in 2020 for 2021 calendar year? Lastly, what is the definition of gross receipts? Total revenues OR total revenues minus returns and allowances? This question is important because this will determine if I hit the $250K gross receipts threshold where I will have to pay $900 LLC fee in CA. Thank you 🙏

@jimhart 4 года назад

You should probably schedule a call with me - hawthornlaw.net/consult

@heinaye3594 4 года назад

Can you send the money electronically instead of writing a physical check to yourself?

@alf4006 5 лет назад

You are the man 👍🏾

@the-next-gear3626 3 года назад

Awesome videos and info. You have a new subscriber!

@juneholder4416 5 лет назад

im a single member LLC but Im not online yet, therefore I have no income from my business. So my question would be will I still need to file taxes?

@jimhart 5 лет назад

Can't answer legal questions in RU-vid comments, unfortunately. There are lots of reasons that someone may or may not file taxes.Income or losses from the LLC are reported on a schedule C with your 1040. Most people have income from a job or somewhere else that they would need to report on their 1040.

@realJohnJohn 5 лет назад

Question if provide a service also working with my team of contractor - do I pay my self like the other contractor or after profits of any are left over ? Some guidance is very much appreciated

@daveanderson2345 4 года назад

Once you hit $35k consider changing from LLC to S-Corp. Thank you!👍🏽

@BTFOOMNY 4 года назад

Why? Chrysler/Fiat is a multi-billion dollar LLC, traded on the NYSE.

@osbonchannel7266 4 года назад

Starting my own towing business, just myself. Does this qualify for single person LLC? Or would an s Corp better? It's just myself until I can grow bigger.

@Shineynsparkles 4 года назад

Osbon Channel LLC then s Corp

@medicaljaguar4580 5 лет назад

Do all the members have to sign the operation agreement in CT, 4 members One of the member refuse to sign?

@BTFOOMNY 4 года назад

all members have to sign. make him an employee.

@ryanoneil7641 2 года назад

how much money do you leave in your operating expense account typically? does that account usually stay close to empty to just cover expenses?

@ricklorion 6 лет назад

Intro is the best.

@jimhart 5 лет назад

Thanks for watching Richard Lorion! I appreciate it!

@MOstix13 4 года назад

Great useful info presented clearly! Thanks

@brianwilliams5082 5 лет назад

Great video! Thank you for the information. If you start off with as a single member LLC and start having income. And then lets say 6 months in the year(starting from Jan.) you are noticing you are receiving more income than anticipated and starting to go over 30k within six months of having your business. Can you change to a S-Corp anytime? Say mid year or prior to the end of the year for tax purposes?

@jimhart 5 лет назад

You can change anytime, but there are Deadlines that will dictate which tax year the filing becomes effective.