I formed a pc and now realize i have to pay myself via payroll and deduct taxes and send to irs etc…if I convert to a pllc can I take draws as I please and just pay taxes at the end of the year like it did b4 ? w/out dealing w eftps and sending taxes ….
Just to clarify for other readers:
“pc” means Professional Corporation. A Professional Corporation is essentially a corporation whose owners are all members of a particular profession, usually licensed by the state (such as lawyers, accountants, doctors, etc.), and where the purpose of the corporation is to provide such professional services.
A “PLLC” is similar in that it is an LLC whose members are licensed professionals and the purpose of the PLLC is to provide such professional services.
Each state has its own list of what occupations are considered “professions”.
As an LLC owner, you can take draws instead of a salary.
Like all taxpayers, LLC (or PLLC) members must pay quarterly estimated taxes, which can be calculated using Form 1040 ES.
Your self-employment taxes (which is the self-employed business owner’s version of the Social Security and Medicare taxes taken out of an employee’s paycheck) are calculated using Form 1040 SE.
Depending on your income level and amount of taxes owed the previous year, you might be required to pay estimated quarterly taxes.