How to Pay Yourself as an LLC in 2025 (BIG UPDATES)

Summary

This video explains the four ways to pay yourself from an LLC and how to choose the right structure for your business. It highlights the significant tax savings potential of an S-Corp election, which separates salary from profit distributions to reduce self-employment taxes. The video also warns about critical pitfalls, such as determining a "reasonable salary" for an S-Corp and navigating state tax conformity issues that can create unexpected tax bills. It provides a step-by-step framework for business owners, including STR hosts, to analyze their situation and make an informed decision for 2025 and beyond.