Do I Need A W-2 As A Single-Member LLC With No Employees?

Do I need a W-2 as a Single-member LLC with no employees? how do I pay myself and file my taxes?

Answer

You pay yourself by writing a check from the LLC to yourself. Profit distribution.

You file your taxes by reporting your LLC’s revenues and expenses on Schedule C of your 1040 tax return.

Because the LLC is a pass-through taxed entity, you don’t have to withhold taxes on each distribution from the LLC to its member.

Do not setup a W-2 for yourself as sole member of the SMLLC. It’s incorrect, confusing, and costly.

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