How to Pay yourself as LLC. Did you recently start a limited liability company otherwise known as an
LLC, but you still haven't figured out how to legally pay yourself? Well, it can be kind of
tricky, and there's some things that you can do that are really, really wrong. I've even done some
of them myself. In this video, I'm gonna share with you exactly how to legally and ethically pay
yourself as an LLC. Let's go.
I'm going to share with you a simple step by step process for setting up a limited liability
company. I'm going to share with you my biggest secret on how you save on tax liabilities. And
I'm going to share with you the number one thing you need to avoid when paying yourself
as an LLC. There are so many benefits to being an entrepreneur, I absolutely love
being entrepreneur and I'm considered a serial entrepreneur having more than eight businesses
that I currently run, including a nonprofit, and most of my businesses are an LLC. You literally
have the ability to protect yourself, because that is what a limited liability company does.
You're setting up a business entity separate from yourself that's going to shield you from some of
the liability that comes with running a business, it's an amazing thing that you want to do. Now,
I'm not a tax accountant or an attorney, so I cannot advise you on how to set up
your business. But for the purpose of this video, I'll just share with you what I've done. My first
business was an LLC, it was a limited liability company and it was super easy to set up. I was
able to get this done while I had a job and it has become a life changer for me. Being a business
owner is one of the best things that you can do to make a lot of money, have unlimited income,
having unlimited time where you own your time and have the ability to get great tax deductions and
not pay as much taxes as I used to pay when I was a W2 employee. So let me tell you how you get
this done because it is very different than being an employee. So there are three types of business
registrations that you can set up. One, of course, is the one we're talking about, an LLC, otherwise
known as a limited liability company. This setup is a structure that allows you to create
a separate entity and your business, of course, is a separate entity. And that LLC will have members.
Each person is a member of the LLC whoever is in your business. So if it's just you, you're the
managing member of your LLC and if you have other business partners, they can either be managers,
or they can be managing members as well. This is one of the most popular business structures,
because it is very simple to understand. And it provides so many protections for you as a person.
You want to be able to create a business entity that protects you and your personal assets,
and an LLC is a great way to do it. Now there are two other options that you can
do when setting up a business entity. Instead of doing an LLC or Limited Liability Company,
you have the ability to set up a corporation, you can do either a C Corp, or an S corp. Now again,
I'm not going to get into the definition of what those two things mean, because they are different
types of entities. Now for your records, I do have lots of types of business structures. Like I said,
I have eight businesses, including a nonprofit that I run, and I have all different types of
business structures. LLC's are a great way to start a business and a great way for sole proprietors or
really small businesses. But a lot of times you may need to be a corporation where you're able
to pay yourself or get yourself a W two and things like that, an LLC will not provide you
that benefit. So we're not going to get into that. If you really want to pay yourself via
w two or put yourself on payroll as the owner of your company, you probably should not do an LLC,
you probably should do a corporation because it will allow you to do some of those things. So now
let's talk about how you do pay yourself though, as an LLC. Since you can't just be on payroll or
have a paycheck and a W two like an employee. You're the owner of the company with an LLC. So
how exactly can you pay yourself since you cannot get a paycheck? Let's talk about that. The first
thing that you want to do when you have an LLC and you want to pay yourself is you should definitely
get a business checking account. Now there are so many other reasons as to why I can tell you
you definitely should have a business checking account for your business. But this is going to
be the primary thing that you really need to pay yourself. So if you're looking for a bank
and you want to set up a business checking account, you want to do this quickly and not
use a lot of money, you can use the link that I have below to NorthOne bank. They're online
bank for small entrepreneurs and you can get your business checking account set up in less
than three minutes. It's absolutely amazing. You even get a debit card that you can use anywhere
in the United States and abroad. I absolutely love NorthOne bank and again, it's an easy
way to get a business checking account. So even if you don't use NorthOne bank, get a business
checking account with a bank. I recommend And of course NorthOne bank or a midsize bank
like regents bank, BB and T Ozark, a midsize bank, not a bank, like Chase, Wells Fargo or Bank of
America, again, nothing against those banks. But if you're a small business just getting started,
I really suggest you using a bank that's going to offer you the most benefits and be a bank
that you can go to that's willing to lend to a startup. A lot of times banks like Chase,
Wells Fargo and Bank of America, they're really big banks, they have a lot of big clients, and
they're not dealing with really small businesses like you may have. So I'm going to give you the
best opportunity, start small and then you can grow to some of those bigger banks. But let's
talk about how you pay yourself. Because again, you'll need that checking account so that you have
the place to put your money for your business, and some funds to actually pay yourself with. So let's
talk about that. So the next thing that you don't want to do is to pay yourself and all you have to
do once you have an LLC, and you have some profits to pay yourself with, you literally can just write
yourself a check. Yeah, it's really that simple. And that's why I told you to get a business
checking account because legally and ethically as the managing member of your limited liability
company, your LLC, you're the managing member, you can distribute profits to anyone and that would be
you. And so you don't want to pay yourself a salary or a regular set amount of money,
you really want to take a distribution based on the business and based on the profits. One of the
things that I learned and a big mistake that I made when I had an LLC is I literally put
myself on payroll, someone told me that you can do that, and that is a big no, no, with an LLC,
I literally had to amend my taxes, and get all of that money back and then refile my taxes and then
pay them a different way. Long story short, when you have an LLC, and you are the owner,
the managing member of that LLC, the easiest, simplest way to pay yourself is to write yourself
a check from the business checking account. Put that that's a distribution in the memo line, do
not put that as your salary. Simple, easy. Whoa, did you catch that point? Make sure you like this
video, make sure you subscribe to my channel, and do not forget to click that little notification
bell so you do not miss any of this content that I'm bringing to you nearly every single day. Okay,
back to this video. And then last but not least, you must file your taxes. So many people think
that it's so easy and fun to have a business and of course, I named all of the wonderful benefits
there are to having a business and being an entrepreneur. And yes, it's awesome. But one thing
that you must make sure is that you are filing your taxes timely. So many people get in trouble.
Some even go to jail because they haven't filed their taxes or pay them and as a business owner
and entrepreneur, paying your taxes is usually not a big deal. You usually have so many write
offs and deductions and things like that, that you can do that is really a great benefit for
you. Just think about it. The tax code in America is really set up for entrepreneurs and businesses.
All of the banking and codes and all that we have are designed to make you money and save you
on taxes. Why do you think the biggest companies don't really pay any taxes? Well, that's how the
tax code is set up. You can complain about it, or you can be the beneficiary of it by starting an
LLC just like I did. You pick your choice. I have written an entire book that I want to give to you
absolutely free. My book, Real Estate Millionaire Secrets, is a book that I poured my heart into and
it tells you my full story on how to invest in real estate, how to start a business and how to
pay the fewest taxes possible doing the same things that I did. This book is the blueprint
on what I did to become a real estate millionaire and again, this book is absolutely free to you. Go
to noellefreebook.com and get my new book, Real Estate Millionaire Secrets, absolutely free. Again,
that's noellesfreebook.com. Noelle, N O E L L E with an S, freebook.com. Noellesfreebook.com. You
can get this book absolutely free. You just cover shipping. I just want to make sure that you have
all of the resources, all of the tools and all of the knowledge that you need to be successful.
This is Noelle, to your success