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Question
I am the sole owner of an LLC. We are just starting to make profits. How much draw or salary should i take out for myself. If the company brings in 10,000 a month. How much draw should I take and how much tax would be taken out?
Thank you
As the sole member of an LLC, you will complete your tax returns as if you were a sole proprietor. That being said, all income the LLC makes will be taxed directly to you, regardless of how much you withdraw. So take out whatever you need if you think the company doesn't need it for something else. You also need to see form 1040ES, which will help you estimate your taxes and explain how to make estimated tax payments. You'll pay them quarterly. That's how tax is taken out- no one will do it for you, you just have to send in a check (or pay online) once you've estimated how much you'll owe for the year.
Best of luck to you!
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Answers by Expert:
Vanessa D. Powell, CPA
Expertise
I am experienced with general bookkeeping, payroll, journal entries, adjusting entries, all types of pension accounting, compliance issues, ERISA, benefit plan auditing, financial statements, payroll tax, Form 5500, retirement planning, and related issues. Please no homework questions. Only US accounting, please.
Experience
I am a CPA in Southern CA. I audit not-for-profit organizations, corporations, and employee benefit plans for the large accounting firm I work for, as well as performing other attest services, planning, and tax services.
Organizations
California Society of CPAs, American Institute of Certified Public Accountants
Education/Credentials
Licensed CPA in the state of CA. Graduated summa cum laude from Colorado Technical University. In order to keep my license, I take 80 hours of CPE every two years. Much of it in the field of accounting, auditing, and employee benefit plans.
Awards and Honors
Graduated summa cum laude (with highest honor).
Past/Present Clients
I have clients from all over the world, in nearly every industry. Most of my audit clients are employee benefit plans and not-for-profit entities. Most of my compilation engagements are manufacturing, agriculture, and construction.
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