How to Pay Yourself as an LLC in 2025
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nice video
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It’s one thing to form an LLC and to start making money from a new business; it’s another thing entirely to make sure that you pay yourself correctly from your business. A failure to pay yourself correctly as an LLC can create massive problems for your business. For this reason, all LLC owners need to know how to pay themselves as LLCs in 2025.
This was very informative. Thank you. I have a question does everything you said here apply to small business as well. Like one or 2 employees max?
In this video, tax expert Karlton Dennis walks you through the process of paying yourself as an LLC. This information is extremely helpful for all LLC owners who want to make sure that they don’t accidentally commingle their personal and business funds. There are a number of key steps that business owners need to know for transferring funds from an LLC.
Karlton walks you through every single step of the process of transferring funds out of an LLC into a personal account after an LLC starts making money. Following all of these steps correctly is critical for making sure that mistakes are not made that get LLCs in trouble with the law. This video is relevant for all LLC owners in 2025.
I don’t believe this covers S Corporations
CHAPTERS:
0:00 Intro
Very informative video!!!
0:39 How to Take Owner's Draws to Pay Yourself as an LLC in 2025
1:54 Step #1: Get an EIN
Is Apple Pay a good idea to pay yourself?
2:23 Step #2: Set Up Your Business Bank Account
3:11 Step #3: Make Your Owner's Draw
Do you have a video that compares all the different income/tax structures (equity trust, s corp, 501/508, CRT, LLC, etc etc etc)? Aiming for max minimization or elimination of taxation. Thank you
6:09 Case Study for Paying Yourself as an LLC
6:37 Other Tax Information for LLC Owners
(KARLTON DENNIS)
Tax advisor focuses on
Reducing taxes legally
Entitly planning LLC S-CORP PARTNERSHIP
real estate tax strategy
Depreciation planning
Cost segregation
Short term rental loopholes
Business deduction
Long term tax planning
THIS IS STRATEGY, NOT ACCOUNTING
KARLTON DENNIS FALLS INTO THIS CATEGORY- HE'S AN ER + STRATEGIST, ( NOT) CPA
IN MY PERSONAL OPINION
KARLTON DENNIS VERY SMART ADVISORS IM A FAN I FOLLOW HIM YOUTUBE. LEARN OLOT FROM HIM I DONT EVEN PAY HIM, I TAKE THE TIME WATCH HE'S YOUTUBE VIDEOS.
GOD BLESS YOU SIR IF YOU READING THIS.....
7:51 Limited Liability in LLCs
9:30 Subscriber Question!
For proof, I use thepaystubs. I also log my cash payments there. Is it a good option?
12:08 Outro
*Disclaimer: I am not a financial advisor nor am I an attorney. This information is for entertainment purposes only. It is highly recommended that you speak with a tax professional or tax attorney before performing any of the strategies mentioned in this video. Thank you.
I just want to make sure I'm understanding this properly- if LLC is not double-taxed, does that mean the business pays taxes on the income and I don't have to pay taxes after I've transferred to my own account?
#llc #ownersdraw #taxstrategy
I love your channel. It is very informative, and I love the way you break things down piece by piece. I'm a new LLC owner, and I'm forming a business. It's been very stressful and very overwhelming, and I appreciate all the information and guidance you provide through your channel. I know, and I full heartedly believe that my business is going to flourish and be successful. I just have to keep pushing forward and don't quit.
More User Perspectives
Can I have 2 separate banks to use? one for personal and one for the business banking?And then once I want to pull the owners draw , can I transfer that to my personal bank account?
@joshuahernandez5180Do you have a company to help set llc
@RZ-xd6vcI'm in the gig economy and I'm going into voice over. I decided to make my online business official and opened a LLC but I have to deposit $100 to open a business savings account at BOA. I am going to do this with my personal money is this ok? I just consider it to be an business investment.
@joywest1078Most people mess this up by mixing money and calling it a system. Pay yourself with intent, track it properly, and stay clean from day one. If someone still needs to set up the LLC itself, Northelic is the fast way to get that part done. Basics first.
@BaonaWongaLOL EIN Number: the N in EIN stands for number so, Employee Identification Number number. It's S "core" not S-Corpse lol
@wellnessmomsolutions9525Thank You Brother , Confirmed .
@AstrusInfinitiveLegitimately the easiest to follow financial advice video I'd ever watched.
@sandandpapersodomI would have to pay 375 to get my LLC renewed from four years ago or should I just start a new one? I was wondering what the benefits would be
@JFlow804Thanks!
@kimarengRight on time...
@candiceburke9671i believe you mean an S corp. from what ive been watching from Tax strategists if you have a sole LLC you pay taxes on all the money you make. Once you make 70k then you can switch to an S corp and then take owners draw after you pay yourself a average salary for that type of job
@fireman1780Very in depth and informative. Thank you sir.
@datcrazyteacherEIN is FREE through the IRS. Don’t let places like legal zoom do it unless it’s a free option. Most are trying to charge extra $49 for it
@HoosierTruckerNice perspective
@LinhChau-j2nincredible ty
@rawtalent257Sounds like Unlce Sam’s makes it complicated
@314greenpurpHi my name is Dwight i set up my LLC and I have EIN business number i want to know how can get a loan either though i have know collateral
@Dwightrichardson112Do you get an EIN before starting an LLC???
@caryhendricks2938I have a business bank account already so show me what to do
@AnthonyPaulk-t6pTomorrow
@AnthonyPaulk-t6pNew entity, owner "contributes" cash infusion from his/her personal account into the business account, is this credit transaction in any way considered co-mingleng accounts? Or is the focus only debits transactions?
@twopointthreeTrustWhat about if LLC owners want to go exempt this year? Fuck the government
@ameriezzzI know this is an old video but if someone sees this, can they explain if my business account did run out of money is there a way that I can put money into that account from my personal account to provide funding or would that cause problems with the veil?
@AMJGameTimeWow thank you.
@ericdavidwallaceThe best way to give yourself a raise is to stop overpaying on taxes. I used 1dollar montana to skip the sales tax on my car
@Cricket2-q4eThanks Karlton! Everyone need to hear this!
@LompiXerIs this ai ???
@coolbreeze6198You’re a total rockstar for making this video!
@ShopBH-n8dwould love to own a business but i cant make enough money to even get one started
@SkaggyGolfsThank you for your informative video! If I claim my “home office” portion of my home, does this mean someone can come after a portion of my home if they sue the business? If so, is it better to have the business pay “rent” for the home office instead?
Thank you!
“Pass through Entity” I love it i love it!
@fabianmoreno9714Practical payment tip that's easy to implement.
@YourHappiness-v8f4edue your breakdown for owners Draw is flawless - similar to how I pay myself hehe - keep up the good content
@AlainHernandezIs it a ACH transfer ???
@shadmanigat2232So helpful thanks
@mizhamilton4937For smaller businesses like mine, a sole proprietorship worked out a little better than the LLC designation. I still have the EIN and I’m not paying thousands in taxes, filing and state fees. And I have business insurance so I’m not seeing any other tangible benefits having an LLC in my situation.
@joshearsley2335I wish there was videos like this when I was first going through this. Its so important to be certain when it comes to additional expenses and the like because it is easy for things to slip by. You are truely doing God’s work by making this information so digestable for taxpayers.
@Tyler-x1i6gHey Karlton, love the video. This helped me get a little bit more understanding surrounding LLC's. So I wanted to ask if I'm NOT a business and I work with different companies as a contractor would it still be beneficial for me to create an LLC in the coming year? One of the companies I work with already takes takes out of what i'm paid, the other 2 don't.
@inuyasha561