Pay yourself the right way

How you take money out depends on how your LLC is taxed. Doing it wrong can cause tax problems.

• If your LLC is taxed as a sole proprietor or partnership, you usually take an owner's draw.
• If you elected S corporation status, you generally must pay yourself a reasonable salary through payroll.
• Move money from the business account to your personal account. Never pay personal bills straight from the business.

This playbook is general information, not legal, tax or financial advice. Rules change, so confirm details with a licensed professional. Last reviewed September 2026.