Single Member LLCs
As a single member Nevada limited liability co is there a general rule of thumb of how much one ought to pay themself as owner?
As a single-member LLC, you can be treated as a disregarded entity by the IRS and therefore there are no limits or requirements on how much of the LLC's profits you can pay yourself from.
You will be taxed on all the LLC's profits whether you take a draw or not. This is different from S-corps, where there are complicated rules on minimum salaries and "accumulated earnings tax" if you leave too much money in the corporation. You don't need to worry about those issues with an LLC. From a business perspective, you should probably leave enough money in the LLC to act as working capital. Again, this is a business decision, and you might choose to utilize credit rather than forgo personal income.
What Other Visitors Have Asked
Click below to see questions from other visitors to this page...
Facebook Application Tax Question
Not rated yet
I own a Facebook Application that I formed as an LLC. Basically, Revenue = $75k for 2008, Expenses = $25k.
How should I fill out my taxes? It will ...
