Have a Tax Question? Ask a Tax Expert
Thank you for your question, my name is XXXXX XXXXX I will be happy to assist today
You are correct - with a single member LLC the owner should not show up on payroll
In the end though she pays the same tax, because she pays her FICA taxes through her payroll and then the profits of the business are subject to self employment taxes....so in the end, the tax should be the same but it's incorrect to have her on payroll.
You would just take owner draws.
OK, that's what I thought. Thanks for getting back to me.
I know, it's really a "no never mind" but I prefer to do things correctly. Could be that way is the only way she'd pay her taxes timely.
Once you are satisfied with your answer, please rate me positively so that I may receive credit for assisting you today
Have a good one!