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minfante-pfn365-
September 15, 2021
Question

If an LLC member is leaving their "other job" to work fulltime as the LLC's CEO or COO, how should that LLC member be paid? As a W2 employee? Or all owner draw?

  • September 15, 2021
  • 1 reply
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Currently 2 of the 5 owners who work part time in LLC get paid small monthly owner draw. Both will be joining the LLC fulltime as CEO and COO of the growing company. How should they be paid?

1 reply

Rustler
Rustler
September 15, 2021

LLC is not a business type, it is a state legal protection so your personal assets are not subject to a law suit that goes against the business

 

what matters is how the company is taxed

sole proprietors and partnerships the owners/partners can NOT be on payroll

C- and S-corporations the working share holders must be on payroll

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