How to pay yourself from your LLC, how much to pay yourself from your LLC, and when to pay yourself

Here is how to pay yourself and how much to pay yourself when you have an LLC. By the way, this is a very general video and you'll want to check your LLC operating agreement to see what it says regarding paying the members of the LLC. But oftentimes you can simply just transfer the money from the LLC bank account over to your personal account or the other owner's accounts. You can do this via a bank transfer, a wire transfer, or simply just writing a check to each of the owners. Every time you do this, you'll want to keep track of it and label it as an owner's draw. But that's typically the easier part. The harder part is determining how much to pay yourselves. So if you're a single-member LLC taxed as a disregarded entity, then you decide when to pay yourself and how much. If you have partners, then you'll want to check the LLC operating agreement to see what it says regarding paying the owners of the LLC. But generally, it must be a unanimous or a majority decision amongst the partners, and typically the amount paid is proportionate to the percentage of ownership of each member. You'll also want to make sure that you don't pay yourself or the other owners too much because you'll want to keep enough money in the account for tax purposes and for other operating expenses that the business might incur. To be on the safe side, I would budget and expect to pay 25 to 40% in taxes. But ultimately, I recommend working with a CPA to determine how much to pay yourself, how to keep track of the distributions and label them, and how to file taxes.