How do you pay yourself on LLC?

As the owner of an LLC, you are not considered an employee and therefore cannot receive a paycheck. Instead, you must pay yourself through what is called a “distribution.”

A distribution is simply when the LLC transfers money from the business account to your personal account. This can be done at any time and for any amount, as long as there is enough money in the LLC’s account to cover the distribution.

There are no taxes withheld from distributions, so it is important to set aside some money each month to pay your taxes come tax time. The amount you will owe in taxes will depend on how much money you make from the LLC and what tax bracket you fall into.

It is also important to keep good records of all distributions made from the LLC. This will come in handy come tax time, as you will need to report all distributions on your personal tax return.