Hello. Thank you for using JustAnswer.
First, congratulations on your first of many profitable months!
Second, you have three options:
1) treat the profit as business
income. You pay no salary and no payroll tax. All business income reported on 1040 Schedule C and is fully offset by year's credits and deductions.
2) you are an owner/member of the LLC
. You can take an owner's draw of profit. You pay personal income tax, self-employment tax, but you are not treated as an employee and the company does not have the burden of dealing with administration of employee payroll (bwc, jfs, ui, taxes).
3) you treat yourself as an employee. The company takes on payroll responsibilities and issues a W-2 at end of January of each year. You pay income tax on the W-2 amount.
Many, if not most, opt for option 2.
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