💰LLC owners have different options to pay themselves based on the tax status of the LLC.
📝For sole proprietors and partnerships, distributions are commonly used to pay yourself.
📊Consider setting a regular schedule for distributions to maintain financial discipline.
🖊️Partnerships require clear agreements on distributions among partners.
💼LLCs taxed as an S Corp allows for both salary and distributions to owners.
How do I pay myself as a sole proprietor or partnership?
—You can pay yourself by taking distributions from the LLC's profits.
What is the best way to set aside taxes for distributions?
—Set aside a portion of each distribution to cover income taxes.
What is the difference between LLC taxed as a sole proprietorship and partnership?
—Sole proprietorships have one owner, while partnerships have multiple owners.
Is it necessary to have written agreements for distributions in partnerships?
—It is recommended to have clear agreements in writing to avoid conflicts.
How can an LLC taxed as an S Corp pay its owner?
—Owners can receive both a salary and distributions.
00:00LLC owners have multiple payment options based on tax status.
02:18Distributions and salaries are common methods to pay yourself as a sole proprietor or partnership.
04:00Partnerships require clear agreements for distributions.
06:31LLCs taxed as an S Corp allow owners to receive both salary and distributions.
