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    #1

    single member LLC

    Good Morning,

    I am sure I know this answer - I have a client who is a single member LLC - and has not elected to be treated as a corporation. She is stating that her old accountant says she can write her self a paycheck - as in employee. I am sure this can not happen. Any advice on this.

    Thanks
    Tags: None
    #2
    Pub 334

    You cannot deduct your own salary or any personal withdrawals you make from your business. As a sole proprietor, you are not an employee of the business.
    Michael

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      #3
      Both a sole proprietor and a SMLLC treated as a disregarded entity, can NOT treat the owner/member as an employee.

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        #4
        Biggest "discussions"

        I have had my most frustrating discussions with clients over this. One guy just whined and whined, saying he could never save enough to pay four times a year. I printed a boat load of Forms 1040-ES. Told him they don't care if you send more often than quarterly.

        He said I was a genius.

        Know how many payments he sent in? That's right. Zero.
        If you loan someone $20 and never see them again, it was probably worth it.

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