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Paying self, LLC

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by freddy2k1

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I have recently set up my LLC in Ohio and got bombarded with paperwork from the local and state and feds. I would like to hear what other self employed tech consultants do as far as paying yourself. Do you cut a regular check and take out taxes regularly - and if you do, what about when cash flow is short for a month or two?
Accountant says "pay yourself whatever you want" but does that mean drafts, disbursements, quarterly taxed checks? Any advice appreciated.

4 replies

by sleepin'dawg

Discuss this with your accountant to establish what is best for your business, that is if he is really an accountant and not just a fancy bookeeper. Until you are properly set up and running, a minimum salary to cover living expenses is a safe bet. At year end you can get into dividends and bonuses etc. to even it out.

by freddy2k1

Thanks for the advice. I think you pegged my 'accountant' though, as a fancy bookkeeper. This going into your own business is a LOT harder than it looks

by thelastword

On this topic...kind of.. Does anyone in here know as a consultant whether we can get any benefits such as long term disability insurance, ,dental etc. I am in Canada. Thks

by craig herberg

Living in the USA, I can't answer about Canadian tax laws, but they may be similar. Here, we can purchase all of these benefits with pre-tax money (i.e., deducted from your gross profits).

Craig Herberg

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