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Buy nowI am trying to figure out how to pay myself through an owner's draw and pay myself as an employee through payroll. I am unable to figure the owner's draw out while payroll makes sense to me.
Thanks for reaching out to us here in the Community, @toochspropertymanagement.
I have some information about paying yourself as the owner and an employee in QuickBooks. If your company is taxed as a Limited Liability Company (LLC), you can choose to pay yourself in either of the following:
To pay yourself as a salary, you'll have to add yourself as an employee and run payroll.
To pay yourself as a member of an LLC, you would distribute the profits (owner's draw) earned during the fiscal year. From there, write a check for yourself out of the owner's draw account.
Lastly, as an independent contractor, you'll have to pay self-employment taxes on your wages. See this article for the detailed steps: Set up contractors and track them for 1099s in QuickBooks.
If you're unsure of what to select, it's best to consult your accountant. They can guide you through paying yourself and recording taxes.
Here's our QuickBooks Blog that contains information to learn more about how to pay yourself as a business owner: Salary or Draw: How to pay yourself as a business owner or LLC.
With the above recommendation, you should be able to figure out how you're going to pay yourself in QuickBooks.
Additionally, here's our help page for payroll. It has topics with articles to guide you along the process. Just look for a title that'll fit your concern.
Leave a comment anytime below if you have follow-up questions or concerns with paying yourself in QuickBooks. I'm more than happy to answer them for you. Take care and stay safe.
It depends on your business structure - you don't generally get to decide which way to pay yourself.
If you're a sole proprietorship or an LLC taxed as a sole proprietorship, you must take draws. You are not allowed to take a salary.
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