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How to Pay Yourself From an LLC (and How Much Is Safe)
The short answer: in a single-member LLC you pay yourself with an owner's draw: a transfer from the business account to your personal account. Draws aren't taxed when you take them; you're taxed on the business profit, whether you take it or not. A safe draw is profit minus about 25–30% for taxes minus a cushion you keep in the business. If your LLC elects S-corp, you switch to a salary through payroll plus distributions.
How you get paid depends on how the LLC is taxed
| Your LLC | How you pay yourself | How it's taxed |
|---|---|---|
| Single-member (default) | Owner's draws | Profit on your Schedule C; income tax + 15.3% self-employment tax |
| Multi-member (default) | Draws, or guaranteed payments | Partnership return; each owner pays tax on their share |
| Taxed as an S-corp | Salary through payroll + distributions | Payroll taxes on salary only; income tax on both |
Sources: IRS: single-member LLCs, IRS: S corporation compensation.
How much can you safely take each month?
The rule most new owners miss
A single-member LLC can't pay its owner a deductible salary. Paying yourself $3,000 or $6,000 a month doesn't change your tax; your tax is based on what the business earned. That's why you set aside tax money from profit, not from what you take home. See how much to set aside for taxes and quarterly estimated taxes.
A simple system
- Keep a separate business bank account. It's also what keeps your LLC's liability protection meaningful.
- Once a month, total up profit: money in minus business expenses.
- Move your tax share (often 25–30%) into a tax savings account.
- Keep a cushion in the business, such as one to three months of expenses.
- Draw the rest to your personal account, on a regular schedule so your household budget is steady.
If you're taxed as an S-corp
You run payroll for a reasonable salary, with taxes withheld, and take extra profit as distributions. Distributions aren't a wage, but you still owe income tax on them, so you may need estimated payments too. See S-corp reasonable salary and whether it's worth it in LLC vs. S-corp.
Mistakes to avoid
- Paying personal bills straight from the business account
- Drawing everything and leaving nothing for taxes
- Running "payroll" for yourself in a regular single-member LLC (it doesn't work for owners)
- Forgetting that money left in the business is still taxed this year
FAQ
How do I pay myself from a single-member LLC?
Transfer money from the business account to your personal account as an owner's draw. Draws aren't taxed when you take them; you pay income and self-employment tax on the business profit.
Can I pay myself a salary from my LLC?
Not from a default single-member LLC. If the LLC elects to be taxed as an S-corp, you can and must pay yourself a reasonable salary through payroll.
How much should I pay myself from my LLC?
Profit minus your tax set-aside (often 25–30%) minus a cushion you keep in the business. The calculator on this page works it out with 2026 federal rates.
Is an owner's draw taxable?
The draw itself isn't, but the profit it comes from is. You owe tax on your LLC's profit whether you take it out or leave it in.
Sources: IRS: single-member LLCs · IRS: S corporation compensation · IRS: self-employment tax · IRS 2026 inflation adjustments. General information for planning, not tax, legal or financial advice.