Have you ever wondered how an llc pays you the money it has earned on your behalf? If you have money coming in through the limited liability company, then it’s time to figure it out. Time is money, as they say. The last thing you want is to have a merchant account full of money or a stack of checks with no way to get the money.
You can pay yourself as an employee of the business. If you take a payroll paycheck, you will have to register to pay unemployment taxes and make the necessary federal and state deductions for payment. You can apply for unemployment insurance later down the road if needed with this option.
Scheduled Profit Payout
In an operating agreement, you can set a schedule of when the profits will be paid out. If the limited liability company is instructed to give monthly payouts, you will receive your amount of profit every month.
You can pay yourself as an independent contractor. This will involve filling out a 1099 for the LLC so that it can file the designation with the IRS.
However you pay yourself with your limited liability company, keep records of everything. You don’t want to be caught with your pants down during an audit from the IRS.
Haven’t Started the LLC Yet?
Just getting ready and doing some research? If you still haven’t opened a limited liability company yet, we can do that for you. For $199, Wyoming Registered Agent will open your limited liability company. You will receive registered agent service from Wyoming Registered Agent, the Wyoming articles of organization, the Wyoming certificate of organization, mail forwarding (20 pieces), Wyoming street address use, and free friendly help with your incorporation questions.
Now you know how an llc pays you.