How to Pay Yourself in a Single Member LLC | How to Pay Yourself as a Business Owner

Let's break down how to pay yourself as a business owner and how to pay yourself as an LLC.
How to Pay Yourself as a Single Member LLC: Download the FREE written guide at bit.ly/37ZzCxV
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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by 180 Law Co. LLC, with its principal office located at 1580 N. Logan St., Ste 660, PMB 92925, Denver, CO 80203. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with 180 Law Co. LLC or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.
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#AllUpInYoBusiness #Entrepreneur #LLC

[@LBC13]

So overwhelmed with all this LLC stuff 😖 Got so much to do and so much to learn.

[@LyntoyaLockett]

Same here I hope you gotten it all done. Where as I’m just getting started 🤦🏽‍♀️🥺

[@chaseshoffner5094]

Y’all can totally do it! I just turned 20 and started my own business. it’s scary at first but once you get a foot hold then go for it I highly recommend finding a reputable CPA to answer any questions and give honest financial advice and instruction. Yes I know another expense but it’s worth the investment! DO NOT USE 1800- ACOUNTANT, and get QuickBooks set up correctly with a CPA first off! Good luck! Stay hopeful

[@grapeseed427]

...and run a business at the same time!

[@TraeDaMenace]

I feel you on this

[@kelvinadams4877]

Same here but we going to get there soon keep pushing.

[@it6970]

Sis, you are a godsend! You answer all the questions everyone else fails to answer & you aren't trying to hard or yelling at us. I love your videos!

[@martingriffin7849]

Easy on the eye too!!

[@andrasbodo]

The happiest attorney I have ever seen in my life :) Congratulations ! it a pleasure listening to your law lessons on business

[@savan2775]

Thank you for explaining so thoroughly. I am a new salon owner as a single member LLC. I am determined to do everything as correctly as possible. Your video eased my anxiety and worries surrounding the taxation of the business. I have a lot to learn but I can tell you are a good person to gain knowledge from on the basics of distribution of funds. Thank you again, I am definitely going to follow your videos. Also thank you for the free resources to help myself.

[@EvangelistKia]

thank you so much Novo is wonderful. I was able to set up my account and get approved in two days. thank you... Profound Truth, LLC is now in business !

[@allupinyobiz]

Amazing, I'm really happy to hear that! Congrats girl!!

[@LyntoyaLockett]

🎉👸🏽

[@JustAnotherDay2023]

@@allupinyobiz I am a non-resident. If I setup a single member LLC, and: 1. I receive from Amazon $100,000; 2. I pay myself "salary" of $10,000: 3. The cost of the product including shipping is $50,000; then my profit is $40,000. Assume there are no other deductibles, and $60,000 is the total LLC expense Question: a. Will I as US non-resident, get taxed on the salary payment of $10,000? What is the tax rate on the salary? If the salary payment is made to my country of residence bank account (sub-question: is this even allowed, and if not would that mean I need to also open a personal bank account in the US?) will it still get taxed by IRS? b. What is the tax rate on the profit of $40,000 for me as US non-resident? It is unclear whether your explanation on taxation applies to both US resident and non-resident.

[@nancywhite8697]

Morning! sounds good Was you able to get your paper-work by postal mail

[@JackieLifeCoach]

You went to lots of efforts to help all newbies in owning a business, LLC. I was so pleased for all your help and advice. I am ever so grateful for this information. Thank you so much.

[@TraeDaMenace]

Im a new business owner with out the knowledge of knowing nothing..this was my biggest question..thank you so much for helping me understand more

[@AllyssaALewis]

This is the clearest delivery I've ever heard on how to pay yourself in a single-member LLC! I am so thankful for you making this video!

[@DreamInspired]

Aiden, I love your channel! I own a trucking LLC and just moved from FL to GA. Your video on 3 ways to move an LLC a while back was instrumental and my key reference point. I’m just wanted to say think you for your videos!

[@nancywhite8697]

Morning sounds good! so how is it out there in Ga, I'm currently want to relocate that way too

[@aliyahthegardenist]

You're the only one I've seen on KZbin who broke down the employment tax in such a clear way. I've watched about 100 videos on this topic😅. Thank you for being thorough❤

[@ndavis894]

You are a blessing dropping all of these gems! I've learned so much from you. Thank you for the info.

[@krustysurfer]

Keeping meticulous records is key along with staying organized.

[@adriennerose5189]

You are seriously the only person on KZbin that has been able to explain LLCs in a way that makes sense and easy to follow. Keep doing what your doing and I just subscribed for more videos to come and previous videos made! Thank you!

[@brianlandis3057]

I know, RIGHT?!! :D

[@rachelbeck7747]

In first year of real estate and created an LLC - this is SO helpful and needed. Cannot thank you enough!

[@rodtumlin9608]

Wonderful article. I appreciate your energy and commitment to assist small business owners.

[@EryiMartinez]

I’m new to starting my business first year. How about when is the best time to pay yourself? Like a few times throughout the year or one time ?

[@shadowsidesoamplified]

Spending the next couple of months to learn everything i can about business ownership. I'm making my dream of owning a plant shop come true! Thank you much for all your info it is priceless!!

[@skhonouta]

Great video! Very informative for me as I just started my own small business.

[@yanachriswhelan4715]

Good to be here, this is exactly what I needed today. I am starting a small business in the niche of mentoring and coaching program. At this stage I am exploring with the business plan, developing the website and intellectual property for the coaching session with the brand name that I am interested to test prior the trademark process. Thank you very much, Yana.

[@josephtaylor3491]

You won me overfrom the other business lawyers I would listen to because of the details and intricacies you often give along with the subject matter. Keep up

[@allupinyobiz]

Awesome, I love that! Thanks so much for watching! 😁

[@Kayraine]

I heard "on this episode of all up in yo business" and cracked up. Subscribed.

[@antonywoe9353]

Cute

[@dhuratadobbins3001]

Same!!! 🤣🤣

[@Darksun30]

I thought I was the only one.

[@alonhansen4419]

I got immediately homesick as soon as you welcomed us. Thank you for sharing and offering a tutorial in a way that is easier to grasp. Thank you from St.Croix, USVI to you at my home home of Denver/ Aurora CO! Subscribed

[@AnthonyCarrTV]

I'm sharing you to my wife... (Manager!) so we can get all this stuff down right! Thanks!

[@evocre8r]

This... Was.... Wait for it..... AWESOME!!!!!!!!!!!!!!!! Thanks so much. I'm helping wifey with her new LLC and your channel is exactly what we need. Liked and subscribed. Thanks!

[@sonyagorski6936]

Thank you for taking your time to create helpful videos!

[@SuperChamp49]

She's so cool, knowledgeable, and cute. The info that she's provided on the 3 videos that I've watched have been soooo helpful and easy to understand. I've been taking notes, and I'll be better prepared when speaking with resources to progress my business plan.

[@lelyansaunders321]

Thank for some well needed info. Yo’ got yourself a new subscriber here!

[@Taxplanninginternazionale]

Congrats, I appreciated your explanation a lot!

[@allupinyobiz]

Glad to hear that!

[@CC-br7ds]

If you purchased some items that you needed for your business before forming your LLC, can you still count those items as a business expense for tax purposes. Ex: you supplies and services for your business..then you form the LLC..

[@johnholding107]

I would like to know that as well. I'm in the same situation.

[@georgesantiago6083]

I can watch you all day.

[@brianlandis3057]

(Yes, she has that way about her, doesn't she?!) :)

[@TheOneJPtv]

Wow you're like another Professor here on KZbin University. I understood you from start to stop. Thanks!

[@jeremyv2040]

Great job. Newbie. Glad I've come across you. Always nice to hear a different take on things. You never know how much you can really learn.. If you want. Thanks a lot.

[@Jay-dn1fr]

Very interesting and helpful tips, Aiden. Thank you very much for sharing the knowledge.

[@tammyislandsewingtutor]

Very clear and concise. Good thing I have a little understanding.

[@Missionispossible7]

I have watched several of your videos....You Rock. Thanks for sharing such valuable information.

[@teampermaulrealestate]

Great overview of single member LLC! Thank you very much.

[@Oahu-vj9ee]

Awesome 👏 your videos help out a lot. Like how you break down and explain it all in sections!!! Very helpful Mahalo 🤙🏼keep up the good work!!!

[@QueenFaby]

Sooo much good information. Writing all this down. Thank you!

[@allupinyobiz]

Make sure you download my free guide too! That way you won't have to write it all down. :-) you can get the download at bit.ly/37ZzCxV

[@felipesuarezweb]

*Hi Aiden, thanks for the great video, what happens if in my single member llc I am a not american or live in the US? I am a Costa Rica citizen. Would I still have to pay taxes?*

[@naskeelove6363]

I am so happy I ran across your channel you will be a big help to my small business which is In Home Care Services

[@combatdouglas1306]

Do a vid on QBI

[@morganhaydenmusic4166]

These videos are so great! Thank you for making it clear

[@bobtpapa]

great videos. This is the second one I've watched. You do a great job staying on task and making things simple to understand...

[@19560618]

Really appreciate your comments and knowledge on this "LLC business thing"", this is extremely helpful when I am now starting my Real Estate investments. Thank you Again All and Up

[@deegee67]

This was very good information.. but its a lot. When registering for your EIN, can you change your structure at a later date? Meaning if I don't want accept the default classification of disregarded entity.. at a later date... can this be changed?

[@rachellucero3722]

your videos have helped so much, thank you for putting so much time and effort into sharing your knowledge!

[@dkwilliams9819]

Third vid of hers I've watched, liked & subscribed. Fantastic information and presentation.

[@Omarfx007]

Thank you, you've been so much help 🙏

[@Bormanb23]

Awesome video. Thank you

[@heatherrousselo8394]

Thank you for the NOVO referral!! I love your videos. So helpful and I appreciate you taking the time to put this info out for all!

[@theresasheffey2032]

Thank you! I appreciate the way that you explain everything.

[@vegancookingwithroux2564]

Really awesome video helped a lot

[@isd605]

Ah, thank you! I will be setting up an auto-pay schedule to pull the minimum for paying down my HELOC. Now I know it is called a "member distribution". Perfect! I guess I was overthinking the "comingling" element, which this would not be comingling of funds.

[@hoodboundstreetwear1570]

Love your videos. Great information, well presented.

[@triv1797]

This was great! Thanks

[@uzziyahuim-ul4666]

Aiden! Kool name by the way. Once again you’ve done it. Mad easy to understand, and when it comes to people like me.....llc’s for dummies. Thanks a ton.....r u supergirl, come on, you can tell me !?!

[@kyle1562]

Thanks, Fran!

[@martinkrins3915]

Thank you, I learned more from you then others on line

[@petmogulsupplies6631]

thanks for the video, what a good reasonable bookkeeper to use?

[@tammydayton1683]

Fantastic video filled with excellent information.

[@ahsantheanalyst7199]

learned so much. Thank you coach

[@guttedfitness]

Can you do a video on interns vs contractors vs employees as a single member LLC, esp as it relates to taxes ?

[@betancourtd64]

Can I hire you to help me with my Business finances? if not can you recommend someone in Atlanta, ga and how much approximately does it cost to hire someone to help? Thank you so much for all your help. Love listening to all your videos so helpful.

[@danielpulido7710]

Good stuff! Thanks for dropping the 411 on single-member LLCs.

[@glampedlife]

Thank U, I requested guide twice, still didnt receive, not in spam folder. Appreciate all your videos!

[@argonaut119]

As a new subscriber, I wanted to suggest that you do a video on "online accounting software" starting from the basic to intermediate level. From comments by other SB (bakeries, flower shops, hair salons,..) owners, sometimes they have a major obstacle in the accounting & bookkeeping -- with questions like: how to do it, what to record and why, use or not use software, what's required for taxes,... Just a thought on a new direction for your videos.

[@allupinyobiz]

I'm planning a video that is kind of on that topic, but frankly, it's not even close to my area of expertise which is why I don't really talk about that kind of stuff. I'm not an accountant; I don't even do my own accounting/bookkeeping! But thanks for watching and I appreciate the suggestion!

[@lanec6278]

Awesome video and information. Thank you!

[@ephitania]

Thank you so much for giving us your time and helping us through this daunting trail of letters, forms and other legaleses

[@gigigigi5181]

This video was helpful! Thank you so much for the info.

[@monicaalva2423]

Thank you so much for uploading these videos. They contain very useful information. :)

[@cypsrp7924]

Really appreciate your clear cut definitions and explanations. Thank you. Good stuff.

[@Meowercizer1717]

So do I have to pay regular income tax on what I pay myself from my LLC plus SE taxes on schedule C ?

[@martinkrins3915]

Good question, I need to know the answer to that question as well

[@Thinknappythoughts]

Ditto!

[@johnholding107]

From the video she said you pay taxes on all the income from the LLC.

[@tchristian7434]

Very helpful.

[@ronorick224]

Great information! Thank you for sharing your wealth of knowledge.

[@charliehorse8686]

I'm told I should pay myself a consistent amount, and I've been paying myself $6K per month, which more than meets my personal needs. But what if my single member LLC's bank account is just way bigger than it needs to be, and I'd like to yank out $50K for personal investments, all at once. Can I just take a distribution without a "reason"? Also, if I cease operations (and pay all debts owed by the business) how soon can I move all the money into my personal account and treat it as my own? On a similar topic, I assume the LLC dies when I die... (right?) So would the LLC's bank account be treated as part of my estate?

[@TadashiYasahiro]

Thank you so much for breaking this down !!

[@CfizzleDaTrillest]

Thank you for the video: Question, you first mention taxes are computed on the complete $150,000 the business brings in but aren't you only taxed on the "profit' after deductions from operating expenses?

[@dhuratadobbins3001]

I believe she used it as an example, obviously more deductions lower the amount to be taxed. I think that’s why she lowered the rate from 39.3% to 35% taxation

[@dyintooliveproductionsllc4321]

thanks.

[@juliussmith3627]

Thank you so much Aiden! This has given me great insight as to some of the things I need to consider and how I need to proceed in my business. You rock!!

[@lindsaym11]

THIS VIDEO IS A LIFESAVER!

[@josephtaylor3491]

Your added insights are very helpful...

[@cryptowannabee7189]

Appreciate this valuable info and the great freebies! Thank you!!!!

[@nabisyed640]

LOVE YOUR CHANNEL, Thanks for everything. (better than my other nighttime videos)

[@juliatran6617]

Thank you thank you thank you! 🙌 this has been very great legal advice!

[@MsVision101]

Great and informal video. I learned way more than I expected to!

[@unlimitedcashforhomesllc4390]

Good stuff it saves 1000s per year. Question do you recommend paying your taxes every 3 months or 6 months

[@kevinl4893]

great video!

[@juliejohnson2251]

Great job! Well explained. Thank you so much. 👍👍

[@MyGodTube]

Thank you for your video. I think you said and something that might be a mistake. At the beginning you said you taxed 50% on all INCOME of 150k. Later you said you taxed 50% just on the profit of 5k. I believe you meant to say at the beginning that you are taxed on all profits and not all incomes. Right?

[@Rotation411]

Revenues are what we allocate to Taxes, expenses etc. Profit is the income left over after the Revenues have paid out the expenses.

[@peatmoss7417]

This is exactly what I was scratching my head about. Profit is last after expenses have been paid unless LLC requires something different?

[@jeffstreeter3037]

Thanks

[@alejandramachado802]

you are incredible, this was so helpful! thank you! Subscribed for sure!

[@jenbelanger6969]

Thank you! Love your videos. Question: I understand you said all the money that comes into the business is taxable (as in, the IRS sees all the money made as taxable), but that's AFTER expenses, right?

[@EryiMartinez]

Let me know i’m interested too !

[@jewelguy6391]

This is very helpful! Thank you.

[@waltergonzalez3820]

Thank you. Very useful!

[@Name-hl9us]

Excellent video! Thank you for answering so many questions!

[@LuckyyLEVEN]

What if you formed an LLC but haven’t completely gotten your business up in running until a few months after the fact making zero profit at all . How would I go about my taxes ? So i still pay an self employment taxes even though technically I wasn’t in business ?

[@mzmuhammad9861]

From the IRS: You must pay self-employment tax and file Schedule SE (Form 1040 or 1040-SR) if either of the following applies. Your net earnings from self-employment (excluding church employee income) were $400 or more. You had church employee income of $108.28 or more. Therefore, your answer is no. You only pay taxes on your net earnings.

[@damonchepren1659]

Thank you, very helpful and informative. Though I missed having your top quality presentation graphics designed by your high priced graphic designer. :)

[@shantryce375]

😉🤣

[@deijahlynnbernard2139]

Thank you so much!! I'm starting my virtual bookkeeping business and got so confused with everything lol I'm glad there's videos like this, so much info to take in

[@brianlandis3057]

Yup, I'm working with a virtual bookkeeper up in New York--Joe DiChiara from Bedrock Business Builders. My wife and I have an LLC with a preschool that my wife started up this fall here in Millersville, PA (Amberland Kids Academy). With technology these days the virtual bookkeeper thing works! We're using WaveApps and Joe is doing the setup and reconciliation every month.

[@sherleyroper5510]

Very helpful content. Thank you!!!