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Accounting, Payroll & Pension Issues/paying yourself from LLC
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Question
When paying yourself, what account to you put it under?
It depends on a couple of things. If the LLC is organized as, essentially, a partnership (the most common form- you would file a form 1065 for tax purposes), then it would be a draw to a member when they are paid. So it's an equity adjustment, the actual account depending on how your equity section is set up. If you have a draw account, it would go there. If you don't, and simply have an equity account for each partner/member, then it would be debited against that.
Hope that makes sense. 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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