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Accounting, Payroll & Pension Issues/single member payroll?
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Question
I'm setting up a single member LLC in QuickBooks. I'm not sure how to expense out money like payroll for the single member. Do I set him up as a vendor like paying a bill expense or do I need to set him up like an employee of himself? or is there a better way?
If the LLC is incorporated, then payments of wages to the owner/employee are just like wages paid to any other employee.
If the LLC is not incorporated, then the payments are just owners draw.
I do not believe an LLC has to be incorporated; however, this varies depending on the state.
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Accounting, Payroll & Pension Issues
Answers by Expert:
Arthur Naman
Expertise
General accounting and bookkeeping questions. How to do monthly bookkeeping, how to prepare financial reports. How to reconcile accounts.
I cannot answer questions pertaining to pension or retirement planning.
This is not a forum to have homework answered. Please do your own homework.
Experience
30 years' experience doing tax and accounting work
Education/Credentials
MPA from Univ. of Texas at Austin, MBA Golden Gate Univ, San Francisco CA
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