How to Pay Yourself as an LLC in 2025

Summary

This video provides a clear, step-by-step guide for small business owners, including STR hosts, on how to correctly pay themselves from a single-member LLC. Tax expert Karlton Dennis explains the concept of an "owner's draw" and walks through the essential process: obtaining an EIN, setting up a separate business bank account, and properly executing and documenting transfers to a personal account. The video emphasizes the critical mistake of commingling funds and highlights the importance of budgeting for both income and self-employment taxes to maintain legal compliance and the liability protection of the LLC.