How to Pay Yourself the Right Way as a Small Business Owner
You're a coach, creative, wellness pro, or service-based solopreneur—and you’ve taken the smart step of setting up an LLC. But now you're wondering:
"How do I pay myself from my LLC without messing up taxes or my books?"
At DBR Bookkeeping, we help modern entrepreneurs like you pay themselves the right way—cleanly, confidently, and in alignment with how your LLC is structured.
Let’s break down the process so you can finally feel clear, not confused.
🧾 How to Pay Yourself from Your LLC (Without Breaking the Rules)
✅ You’re a Single-Member LLC? You Take an Owner’s Draw.
If you haven’t elected S-Corp status, the IRS treats your LLC like a sole proprietorship. That means you’re not an employee—you’re the owner. You “pay” yourself by transferring money from your business account to your personal one.
✅ Pay Yourself Based on Profit, Not Revenue
Just because your Stripe shows $10K in sales doesn’t mean it’s time to treat yourself. Always use your Profit & Loss report to make smart decisions.
✅ Separate Your Business and Personal Finances (Seriously)
The #1 mistake new LLC owners make? Swiping the business card at Target. Set up a dedicated business account and track every draw. It’s not just smart—it’s protection.
✅ Electing S-Corp Status? Then You Need Payroll.
If your LLC is taxed as an S-Corp, you must pay yourself a “reasonable salary” through payroll software. This adds complexity—but also potential tax savings. (We’ll help you know when it’s worth it.)
✅ Use Consistent Pay Schedules
Don’t randomly grab cash from your business. Set a monthly “owner’s pay” amount, based on real numbers and your goals. Predictability helps you—and your business—thrive.
❓ FAQ: Paying Yourself from an LLC
Q: Should I switch my LLC to an S-Corp?
A: If your net income is over $40K–$50K annually, you might benefit from S-Corp status and payroll. But it comes with rules and costs—let’s talk about what makes sense for you.
Q: Can I pay myself more during a busy season?
A: Absolutely—but check your cash flow first. Consider giving yourself a quarterly bonus instead of irregular large draws.
Q: Will this affect how I save for taxes?
A: Yes. If you’re not on payroll, you’re responsible for self-employment taxes. We recommend saving 25–30% of profit monthly—so you’re never surprised at tax time.
💡 “Paying yourself isn’t selfish—it’s smart.”
You work hard. You deserve to take home income and protect your business. Dr. Bryan Raya helps creatives, coaches, and wellness providers implement systems that save time, reduce taxes, and increase peace of mind.
📞 Schedule your free call with Dr. Raya to set up your LLC income system the right way—and start Doing Business Right.
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