Enrolled Agent for Internal Revenue Service; Remote Tax Expert @ Intuit;
I am an Enrolled Agent for the Internal Revenue Service. Also, I am an aspiring author, business accountant, and entrepreneur who would like to help families manage and build their wealth long term while minimizing their tax liabilities at the same time. I would like to launch my own tax and financial consulting business someday so that I can serve my community in the best way possible. Feel free to ask me any tax related or financial question :)
Hi! Generally speaking, your situation depends on if you are the only member of the LLC. If yes, then you are in business for yourself and therefore, no, you do not pay yourself wages as an "employee". You report income as a self employed person or as an independent contractor for federal and self-employment tax purposes. Let me know if this helps! If, however, two or more people are in business with you, then you are in a partnership. At that case, yes, you can hire employees, but you yourself won't be an employee still. I hope this makes sense. Reach out to me if you need additional help with this.
