1. Forms W2 are required to be issued to the employees and copy A is required to be filed with the Social Security Administration by January 31of the subsequent year (so the 2024 Forms W2 have to be filed by January 31, 2025). You will want to check with your state to see if they also have filing requirements for the W2 forms.
2.If you were operating as a SMLLC taxed as a sole proprietor earlier in the year, you should NOT have been doing payroll for yourself. You as the owner of the SMLLC taxed as a sole proprietorship are not considered an employee, and so therefore should not be paid as an employee. I recommend you "unwind" any wages you paid yourself, and file amended payroll tax reports for the year to eliminate any impact of treating yourself as an employee.
3B: To pay yourself as a SMLLC, you would do so through an owner's draw. To pay yourself LLC income through an owner's draw, write a check from the LLC to your personal account. Record the withdrawal as an owner's draw, along with the appropriate debit in the owner's business account. This periodic payment eliminates the need for payroll taxes and forms. The LLC need not withhold taxes on distribution payments, meaning there are no W-2 or W-4 (employee withholding) forms to deal with. Instead, you will report your share of the business income on your personal tax return and pay income taxes and self-employment taxes on it.
As to whether you should become an S Corporation or not - there are a lot of factors to consider outside of the income tax factors. I would recommend you seek legal expertise to determine what the best business structure is for your situation.
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