How do I get paid through my LLC?
Howdy Islander:
Write yourself a check
I agree.
From an accounting point of view, though, it really isn’t a salary, is it? In an LLC, ALL income is passed through to the individual (single member), so do you really need to identify this as anything? Maybe a “distribution”?
If your LLC is taxed as an S-corp, things change, I believe, because you have to take out taxes…
I’m sure someone can clarify.
-Slip
“From an accounting point of view, though, it really isn’t a salary, is it? In an LLC, ALL income is passed through to the individual (single member), so do you really need to identify this as anything? Maybe a “distribution”?”
Another question - Does an LLC owned by husband and wife who file Jointly count as a “single member” LLC? I know there are other tax considerations depending on if the LLC is or “single member” not… ???
If the LLC is registered in a community property state, then the LLC can be treated for tax purposes as a disregarded entity, just as if it were a single member LLC. If you are not in a community property state, then your LLC can only be treated for tax purposes as a partnership or a corporation, whichever you choose. If you fail to make an election, the default is partnership.