How To Pay Yourself As An LLC in 2025 (And LOWER Taxes!)

Video Description

Learn how to pay yourself as an LLC and lower your taxes in 2025 with this step-by-step guide by a Trusted CPA. Get a Free Tax Consultation: https://mycpacoach.com/contact/ In 2025, the self-employment cap has been set to $176,100, which means you will pay a 15.3% tax on ALL OF YOUR BUSINESS INCOME up to this amount, if you do not pay yourself correctly from your LLC. Not to mention the fact that there are several ways to pay yourself from your LLC - there’s owner distributions, payroll, dividends, and so on. And a lot of people want to know - what is the best way to pay themselves from their LLC, what method should you use, how much should you pay yourself, and more importantly, how much should you leave in your business account to continue to fund operations, pay taxes, and so on. I am going to explain and simplify all of this for you, as a licensed CPA that tax plans every single day for business owners at mycpacoach.com - so stick around until the end for everything you need to know. New 2025 Implications: (0:00) Do This First: (1:05) Do Not Commingle Funds: (1:40) Paying Yourself as a Disregarded Entity: (2:35) Owners Draw / Distribution: (4:05) Saving for Taxes: (4:45) Don't Overpay Yourself: (5:25) The Self-Employment Tax Problem: (6:00) LLC Taxed As An S Corporation?: (6:45) S Corp Savings Example: (7:50) Paying yourself as an S CORP: (8:30) LLC Taxed As An C Corp?: (10:05) C Corp Savings Example: (11:05) Paying yourself as a C CORP: (12:10) Tax Planning: (13:00) Apply for an EIN: https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number Payroll provider (Get a $100 Gift Card): https://gusto.com/?referral_token=sherman5665a3d5&utm_source=inapp