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tax-doctor
tax-doctor, Tax Preparer
Category: Tax
Satisfied Customers: 637
Experience:  Federal, State and local income tax preparation
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I have a LLC Im the only officer. I would like to pay myself

Resolved Question:

I have a LLC I'm the only officer. I would like to pay myself a salary and be an employee instead of a K1. How would that work?
Submitted: 1 year ago.
Category: Tax
Expert:  tax-doctor replied 1 year ago.

tax-doctor : Hello, my name is XXXXX XXXXX I'll be happy to answer this question for you
Customer:

Hi Michael. What do you recommend. I'm wanting to pay myself a salary and receive a w-2 at years end. Possible?

tax-doctor : No problem, you can setup payroll acct on your own through Quickbooks or companies like ADP or Paychex or you could handle everything yourself but this is more difficult
Customer:

I'm being told that by having a LLC I'd be required to my quarterly taxes and receive a k1. Is that true.

Customer:

Sorry to pay my quarterly taxes etc.

tax-doctor :

I understand...typically single-member LLC's are handled the way you've been doing it, but there are no laws against using a payroll companies to pay yourself that's entirely up to you

Customer:

What my LLC is doing is providing skilled and unskilled labor to the Fire / Disaster restoration industry here in the Mid Atlantic area. I use causal labor and have only 1 full time employee who works most jobs.

tax-doctor :

okay, and you may use the payroll company to pay this employee as well

Customer:

I also just did a govt contract as a sub to the GC. As you could imagine I have some difficulty with the insurance side of this as well.

Customer:

I'm setting up quickbooks for this LLC now so it's no problem to employ myself and file a regular return based on my w-2?

tax-doctor :

no

Customer:

OK. So what am I going to run into when I file the the LLC'S return

tax-doctor :

you'll file a sch C the same way and deduct all payroll deductions as an expense on it

tax-doctor :

also, if you have extra money at the end of the year make sure to take a bonus through payroll not just a check otherwise you'll receive a K1 for those amts

Customer:

OK, Got it. My main purpose for doing this is that I'm looking at mortgage lenders requirements and want to make sure I'm not considered a self employed risky loan. I have perfect credit and have left the regular work force to be on my own. However with the tight lending situation I want to appear a normal risk. Does that make sense?

tax-doctor :

yes, banks typically look at paystubs ans previous tax returns

Customer:

I've just sold several properties and am looking to grab a new mortgage and how I show my tax return is coming up so having paystubs and a regular return is required for best rates.

tax-doctor :

yes

Customer:

Ok great....You've been very helpful. Do you prepare returns in the state of VA?

tax-doctor :

No, I'm in NJ

tax-doctor :

okay, thank you and please don't forget to rate my answers, otherwise I'm not paid for them

Customer:

I'm good. Have a great day and thank you for the clear answers. I'll do as you suggested. I'll give you the proper rating.......Thanks again.

tax-doctor :

thank you!

tax-doctor, Tax Preparer
Category: Tax
Satisfied Customers: 637
Experience: Federal, State and local income tax preparation
tax-doctor and 3 other Tax Specialists are ready to help you
Customer: replied 1 year ago.

Hi Micheal,


I had one other question. I have a 20K market loss in 2012. I'm not showing income earned at this point on that return. Should I file a return with the loss on it anyway so I can use it for 2013?

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