If my wife and I start a new business as an LLC, do I have to pay myself a salary?

Similar questions: wife start business LLC pay salary.

You do not have to pay yourself a salary, it's OK to simply take a share of profit, but you must pay self employment tax According to the IRS, members of limited liability corporations (LLCs) are subject to self-employment taxes. In a nutshell, if you are an LLC member, you must pay self-employment taxes on your share of the profits if any one of the following conditions apply: You work more than 501 hours during the LLC’s tax year; Your LLC offers professional services in the areas of consulting, health, law, engineering, architecture, accounting or actuarial science; You are allowed to execute contracts for your LLC; With the current self-employment tax rate at 15.3 percent, many business owners choose to form an S corporation rather than an LLC. In an S corporation, only shareholders are required to pay self-employment taxes on money paid to them as compensation for services.

Also, profits from an S corporation are not taxed. Sources: allbusiness.com/accounting-reporting/cor... .

Short answer is yes. I highly recommend you budget for your business, including your own salary. Otherwise you're tempted to take all the profit without considering how you're going to increase your business.

Tax time will be easier, too, if you consider paying yourself a salary and leaving the remainder in the business. However, states vary so check with your state small business offices before you take any action.

Yes and No. If the business is not profiting in any way, you can say that you were unable to pay a salary. If you find yourself needing to pay a salary, consider moving the company to an S Corp.

You can pay a minimal salary to yourself plus a dividend for the rest that is not required for medicare, ss, etc...

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As a business owner, do I have to collect a salary each week.

I already have an LLC for a small business and would like to start another of a different type. Can I get another LLC?

I am trying to start-up a business. I have formed an LLC, but I do not know how to properly manage it. Any good websites?

Parnership LLC-Business arrangement is $700/wk salary + 25% qtrly profits. How do I handle the mechanics in Quickbooks?

Can a salaried worker be made to take less salary if the business is not doing well.

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