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New Member
posted Sep 17, 2021 7:30:41 PM

Can I pay myself a lump sum out of the EIDL loan as a independent contractor (DoorDash)

Total loan $35,000

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1 Replies
Level 15
Sep 17, 2021 7:54:14 PM

A single member LLC, sole proprietorship and independent contractor are considered disregarded entities by the IRS. you don't "pay yourself" anything. All income received by the business is no different than income received by you personally. The fact the money is an EIDL means that so long as you use it to pay employees, then it's not taxed. Since you can not be an employee of a disregarded entity that you own, you may have to pay that loan back in time and may also be charged interest on the money. Only the interest would be deductible as a business expenses, provided the money was used for valid business expenses.