Question: If you’re a single member LLC, how do you record paying yourself?

Answer: You can record this an owners’ draw from your business. This is not an expense. You can write yourself a check, or just make a transfer from your business banking account to your personal banking account. Owner draws should not show up on your income statement.

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Amy Northard, CPA

Amy Northard, CPA

I’m Amy Northard, and I’m the founder of The Accountants for Creatives®. My team and I understand that the last thing you want to think about is taxes and bookkeeping. That’s why we handle the financial side of things for creatives across the US, giving you the freedom to get back to the work you love.

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  1. Shaleesa October 2, 2017 at 3:59 am

    Where do I record the term “owner’s draw,” and how do I get this to show correctly (not as an expense) in a program like Quickbooks or WaveApp? I have been trying to figure out how to pay myself as a sole prop. without totally messing up my finances and organization. Thanks!

    • Amy Northard, CPA October 2, 2017 at 2:23 pm

      Great question! – You will want to go to your Chart of Accounts (in either program) and create an Equity account called Owner’s Draw. This will allow the transaction to show up on your Balance Sheet instead of an expense.

  2. Barbara Hall October 24, 2017 at 8:44 pm

    My son has a LLC 1 owner with 2 employees. I am doing the payroll thru Quicken & have been paying him as An employee taking out taxes, fica & paying unemployment taxes on him. I listened to your u tube is this not the correct way to pay him?
    Thank you for any assistance.

    • Amy Northard, CPA October 25, 2017 at 2:16 pm

      Hi Barbara – If your son is a Single-Owner LLC taxed as a sole proprietor, he should not receive his pay through a payroll. If he’s a Single-Member LLC taxed as an S-corporation, he should receive a reasonable salary through a payroll.

  3. Shelly Waldman December 19, 2017 at 6:12 pm

    – If I’m an LLC taxed as a S-Corp am I considered an employee of the corporation? And if so, will I need to pay payroll for myself? (I do payroll for all my assistants, including workers comp. And it costs me an extra 25% per assistant. So that would mean paying an extraa 25% in payroll expenses.)

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