All Up In Yo' Business: How Do I Pay Myself in a Multi-Member LLC?

[@steveprachniak5274]

LOVE the simplicity and humor you demonstrate within all of your videos!

[@toodeep1913]

I think the root of the question is not how do you pay yourself, but how does one member take a salary of sorts that is not equal to the percentages. Say one member, owns 10% of the business but does 90% of the work. The business only profits $60,000, and the members agree that $60,000 should all go to the working member. However the other members don't want to be taxed on their portion of $60k because they don't see it, the tax burden also needs to end up on the one member who receives it. I think this is a common situation with multi-member LLCs. You have one or two people doing all the work, while the others just put money in. The ones working should be able to get paid somehow above and beyond their percentage.

[@toodeep1913]

I did some quick research, and the answer is with guaranteed payments. They must be specified in the operating agreement, but the guaranteed payments are classified as a business expense and therefore the other members will not be taxed on them. However the amount of the guaranteed payment cannot be tied to a profit percentage, it must be a fixed amount or some other unrelated formula. If your operating agreement does not allow for this, you must change it and get member approval.

[@scotthedrick2460]

My LLC is taxed as a partnership. Only two members, so it's been easy to divide.

[@cmuhammad]

What are the tax benefits of a multi member llc

[@Capachomexico]

What determines percentage of ownership? Is it the amount of member contribution at beginning when starting the business? What impacts or changes the percentage of ownership later on in the business? How do I gain or lose percentage of ownership?

[@frantzfoamworks9270]

Thank you so much for such a quick and informative video this clip had I discovered it much earlier could have saved me hours of research. Keep up the good work 💪

[@DJACKSTAR]

Thank you so much for your content👍. My question is I formed an LLC with a friend of mine in Georgia. We are both on the LLC as members. My question is who files for the EIN #? We verbally agreed to split profits 50-50%.

[@charlesjohnson6205]

Either one of you. Both have the legal authority to

[@leefamily6992]

Is all this info still correct? Ty!

[@sevendustlivelugones6510]

Is it Mandatory to do a operating agreement?

[@coreyhackett1745]

Is it possible to have an "umbrella" LLC. with multiple single member LLC.'s under that "umbrella"? Thanks & awesome video!

[@XKawN916]

what the heck... did you get your hair done at 1:07?

[@alradai1]

Thank you so much for doing this video, this info helps people a lot

[@ginomunoz9035]

If you have several LLCs net income going into a holding company how do you get paid out? Does a holding company pay you direct like a single member LLCs?

[@ihustlevlog9502]

Great videos!please turn your volume up!

[@MrMustafakamel]

Im from Chicago, and really liked your presentation and the valuable information you provided.. One only question I have is; If we are two owners in one LLC business, should we receive W2 from our business or 1099, or we don't need any of those forms? Thank you again for the video, I wish to you all the best..

[@mattylou1969]

These videos have been very helpful!

[@anthonyc2795]

what if we both own 50% but one gets paid more say 60/40 split?

[@toodeep1913]

I did some quick research, and the answer is with guaranteed payments. They must be specified in the operating agreement, but the guaranteed payments are classified as a business expense and therefore the other members will not be taxed on them. However the amount of the guaranteed payment cannot be tied to a profit percentage, it must be a fixed amount or some other unrelated formula. If your operating agreement does not allow for this, you must change it and get member approval.

[@pabcastil8]

Question can a manager apply for a Corp code to register vehicles because im the owner but I don’t have a driver license Or somebody with a power of attorney can apply for the Corp code help please

[@Campelover]

Thank you for posting.

[@Themortgageeducator]

Hi Excited I came across your videos . I hope you can help I just registered an LLC which 50/50 %ownership for me and spouse I'm just unsure what's the best route to go , if single or multi member the business that my husband and I are creating is building new homes and selling . we don't really plan to distribute until we eventually start making $ or go full time self employed . Your comments are greatly appreciated thanks for your videos.

[@allupinyobiz]

You certainly don't have to take distributions; your Operating Agreement can specify when distributions are to be made. Even if it says that you'll take distributions from time-to-time whenever you and your husband agree to do so. If you have more questions about it, I recommend you contact a CPA or an attorney who is licensed in your state. Thank you so much for watching!

[@goodnewsworkshop]

I just subscribed to your channel! Thank you very much for making these video. They are very informative and entertaining. I have a difficult question and am coming to realize that my partner and I need may need a business lawyer or CPA... but I'll throw it out there. We are wanting to form an LLC that operated in two states: Washington & Oregon. It is a service business in which our LLC's gross income will be directly related to each members contribution of time . The problem is that we do not share profits and expenses directly. We want to be 50-50 partners and also want to be paid for our individual efforts (e.g., time invested in exchange for an hourly rate). I don't think an LLC taxed as a partnership will work because of the percentage distributions. Do you think an LLC taxed as an s-corp would work? With an s-corp can you pay yourselves hourly or does it have to be a salary? It kind of seems more like a franchise than LLC. No pressure to respond and of corse... and I understand this is not legal advise. I'm only trying to get some direction. Also, do you serve clients in WA or OR State? If not, do you have any recommendation?

[@luthervandross2877]

Thank you as always for the information, Is there a certain percentage of income that should remain in the llc in order for the corporate veil to remain impenetrable?

[@vicenteborja5662]

Do we pay our self and our partners according to the number % we own?

[@sn95gonzalezjr]

So owners cannot pay themselves as an employee?

[@patrickgauvin7548]

LOOKING FOR IDEAS MAKING NEW VIDEO'S ? What about looking at the terms of use for say 5 of the best dropshipping companies for conflicting copyright contracts and licensing for using several stores i want to sell on several stores with my art

[@djappleznbizkits6285]

check out that business wold under that table. CO got the girls man

[@mikethompson2061]

Love your videos. I formed a single member LLC in Texas with a S corp election because I thought it would be the best choice for me as a new construction home builder. After filling I had a thought what would happen with the LLC if I was in a car wreak or something and died with the LLC cash & asset's in excess of 400,000 and I was the only member, can the LLC operating agreement legally name someone like my wife as a person that could transact the business as for as legally being able to sign off on property owned by the LLC being that the LLC is it's on legal entity and she was not a member during the formation with the state, or would the state view something like this as community property. I would really like your opinion on this as it's driving me crazy.

[@thomasthrasher3438]

Great video thank you

[@gabrielcampos5064]

Great video, thanks!

[@gerlie4774]

Hi Aiden, We live in Neveda, My husband got proposed to do a joint venture partnership, which we plan to have a joint multi member LLC. Can my husband as a Joint Member llc receive a 1099 to his S-Corp?

[@ishowyouapple]

Let's say there is 2 members in the LLC, and the business makes 100k. Is there a way to tax everything to one member?

[@allupinyobiz]

Yes, but it is complicated. You definitely want to partner up with an attorney and CPA if you are going to structure your LLC that way.

[@Lospesados5]

My dad and I have a multi member llc. I have 51% of membership while my dad the remaining 49%. We made about 140k last year in profits. I want pay my dad more than me. Is that allowed? let say I want to give him 80k and I keep 40k leaving the business with 20k in funds. Is this possible?

[@allupinyobiz]

Sure, it’s possible. You’ll definitely want to talk to a CPA and an attorney who’s licensed in your state though.

[@cactipalmproductions]

Very Helpful!

[@devonprice4568]

I WANT TO OPEN A LLC BUT WITH MULTI BUSINESSES HOW DO I SET THAT UP?

[@allupinyobiz]

Typically you would structure it as either an umbrella LLC or one LLC operating under multiple trade names. Here are a couple of videos on those topics: kzbin.info/www/bejne/i4i6q56ud7x_oKM kzbin.info/www/bejne/j3rKfIWpd95jea8 kzbin.info/www/bejne/hqS0i5eioNyAgZo

[@djappleznbizkits6285]

BIZNEZ WOLF

[@Viral_Barn]

I think you are fine af haha

[@shemcaster2125]

I think you are attractive