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    0 Replies Latest reply on Jan 16, 2014 9:59 AM by Manoj Gupta

    Do I need to do Payroll if I am single LLC owner?

    Manoj Gupta Adventurer

      Per IRS regulations, you do not need to take salary in case of an LLC. But whether you take salary or not, there will not be any tax effect as all of your income whether salary or otherwise, will be subject to self employment tax. That is why I always suggest most of my clients to form an S corp. In most cases for small businesses, S-Corp. is better than LLC. In case of LLC, 100% of net income is subject to self employment taxes (15.30%) while in case of S-Corp., the income subject to self employment tax is typically 30-50% of net income. I have illustrated this and the tax saving impact, on my website with the help of an example. Please see "FREE DOWNLOADS" page on my web site and download the excel file, review and give me your feedback, if any.


      Hope it helped.