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I use QB for a owner/operator LLC trucking company. I am the only employee. I pay myself weekly. Should I set myself up as an employee?

 
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Best answer 10-15-2018

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As sole owner of an LLC (or even a member of a multi-memb...

As sole owner of an LLC (or even a member of a multi-member LLC) you are prohibited from treating yourself as an employee UNLESS you elect to be treated as a corporation for tax purposes. What you "pay" yourself weekly is owner draw against end of year profit or loss.
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update please. my husband just started the same business....

update please. my husband just started the same business. advice needed
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There is no change in answers. A member of an LLC , unles...

There is no change in answers. A member of an LLC , unless the LLC elects to be taxed as a corporation is NEVER on payroll for the LLC (or sole proprietorship, either) It is ALL your money. What you take out is equity draw, what you put in is equity contribution.

The profit OR loss passes through to PERSONAL income as the LLC does not pay income tax.
Established Community Backer ***

As sole owner of an LLC (or even a member of a multi-memb...

As sole owner of an LLC (or even a member of a multi-member LLC) you are prohibited from treating yourself as an employee UNLESS you elect to be treated as a corporation for tax purposes. What you "pay" yourself weekly is owner draw against end of year profit or loss.
Established Community Backer ***

"my husband just started the same business" If this LLC i...

"my husband just started the same business"

If this LLC is a Single-member Disregarded entity as a Sole Proprietorship, the Spouse can be paid through payroll; but you really need to work with your own CPA, as that might not be the Best option out of others, such as Joint Venture or Multi-Member LLC.

Get good, personal, professional guidance on this. This is Not a QB question. You are asking about Legal entity options.


Established Community Backer ***

Do you pay yourself weekly through payroll as an employee...

Do you pay yourself weekly through payroll as an employee, or take a draw? For a draw from Equity, that would be a vendor name, not an employee name. Employee = payroll.

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Re: Do you pay yourself weekly through payroll as an employee...

Im a Dispatcher with several leased drivers who i pay a certain 15% of jobs done as their pay. I have set them up as Vendors. The problem is, I have to send them a statement every week less the 15 % that I charge them for every job done.Im not able to do this on quickbooks.Any idea how?

 

Then, how do i incorporate Factoring into Quickbooks?The same invoices  that I pay the leased drivers are the same invoices i forward to a factor.

QuickBooks Team

Re: I use QB for a owner/operator LLC trucking company. I am the only employee. I pay myself week...

Thank you for joining the thread, @Mwikali

 

Let me help you create your invoices and statements.

 

The first thing you need to do is create a bill for the 15% intended for the vendor, and mark it as a billable expense. To do so, you have to turn the feature on. Also, note that this feature is available for QuickBooks Online Plus. If you're not using this version yet, please upgrade your subscription first.


Here's how:

  1. On the Gear icon, click on Accounts and Settings.
  2. Choose Expenses.
  3. Click on Bills and Expenses, and tick the box for Mark expenses and items billable.
  4. Click on Save.

Here's a screenshot of how you can mark it as billable.

 

 

Once done, create an invoice for the remaining 85% which will be given to your customer. You'll then be given an option to add the billable expense to the invoice. This way, your customer will pay you a total of 100% for every job done. Then, you may create a statement for your vendor.

 

The other option you may consider is editing the billable amount from 15% to 100% once added to an invoice.

 

However, I recommend seeking help from your accountant. This way, they can give you further advice.

 

If you have other concerns, please leave a comment below.

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Re: As sole owner of an LLC (or even a member of a multi-memb...

As far as Owner Equity/Owner Contribution/Owner Draw is concerned.  How do I differenciate from "Gross Trucking Income" and "Owner Equity/Contribution"?  Isnt that one in the same if I am a Sole proprieter?

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