I own an LLC. Do I pay myself as an employee or a 1099?

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I own an LLC. Do I pay myself as an employee or a 1099?

I own a consulting company formed as an LLC. Should I pay myself as an employee of my company or as a contractor of my company? What are the advantages/disadvantages of each? Thanks!

2007-05-27 04:23:46 · 2 answers · asked by TuKu 2 in Business & Finance ➔ Small Business

2 answers

Double check with an accountant. You cannot be an independent contractor of a company that you own. Besides, based on how LLCs are taxed, even if this was possible, there would be no tax advantages.

2007-05-28 05:22:14 · answer #1 · answered by tom m 4 · 0⤊ 0⤋

There are several ways to do this. Ask your accountant for his/her recommendation.

2007-05-27 14:14:07 · answer #2 · answered by jdkilp 7 · 0⤊ 0⤋