no. a PLLC can not pay wages to its owner. you don't get a payment, your income and in effect payment is the net income earned by the PLLC reported on schedule C.
BEFORE YOU DO ANYTHING YOU'LL LATER REGRET,. CONSULT A TAX PROFESSIONAL WHO CAN GO OVER THE PROS AND CONS OF EACH TYPE OF ENTITY
you can not just change the treatment of an entity. you must formally incorporate the PLLC with the state and file 8832 with IRS.
S Corporation
A PLLC can elect to be treated as an S corporation for tax purposes by filing a Form to change the tax status from a LLC . An S class PLLC files a Form 1120S corporate tax return to show income, expenses and other facets of the business operation. Earnings for individual members are reported as wages or dividends, based on the type of work and percentage of ownership, and are taxed as personal income.
C Corporation
Another option is C corporation status, which works the same for a PLLC as it does for a formally incorporated business. The PLLC files a standard Form 1120, Corporate Income Tax Return, and pays taxes at the regular corporate tax rate. It retains earnings as a corporation, however, and doesn't distribute them to members for personal taxation. Members are taxed on what they receive as corporate employees or the dividends they get as shareholders.
C-Corp must pay out as salary virtually all income. any remaining income is tax at 35% and then there are state taxes.
