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Accounting - how to pay yourself for LLCs
Derrick
subscriber Posts: 2
Quick question for all the accountants out there -
I have been told two different things on how payroll should be handled for our business. First of all - we have a small LLC (partnership - my wife and I). We both work full time jobs and the LLC is something that we do in addition to "regular" jobs. We would like to pay ourselves once per quarter. How should this be handled? I have been told to cut ourselves a check, and claim it in Quickbooks as a equity disbursement since the business profit will be added to our personal income at the end of year.
I have also been told to register with the IRS, receive the coupon book, and cut payroll just like every other company. Please help.
I appreciate your help.
Derrick
I have been told two different things on how payroll should be handled for our business. First of all - we have a small LLC (partnership - my wife and I). We both work full time jobs and the LLC is something that we do in addition to "regular" jobs. We would like to pay ourselves once per quarter. How should this be handled? I have been told to cut ourselves a check, and claim it in Quickbooks as a equity disbursement since the business profit will be added to our personal income at the end of year.
I have also been told to register with the IRS, receive the coupon book, and cut payroll just like every other company. Please help.
I appreciate your help.
Derrick
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Comments
Thanks for the informaion. So if I understand what you are saying correctly, I can take salary either way, profit distribution or salary, it will come out the same at the end of year? I just want to make sure that if either way i choose, it is acceptable to the IRS.
Thanks,
Derrick