LoraineG
Employee Tax Expert

Self employed

I would like to add to @rschule1's post.  If you are a sole proprietor or single member LLC, you are NOT allowed to pay yourself through payroll.  The IRS doesn't distinguish between you and your company.  You can't deduct what you pay yourself.  You can only take what's call distributions or owner's draws.  You technically don't pay taxes on the distributions, but they are also not deductible.  

 

The only way will be making the S-Corp election where you are required to pay yourself a reasonable salary or if you choose another legal business entity.  Here's more information:  https://www.irs.gov/businesses/small-businesses-self-employed/paying-yourself.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"