The answer to your question can vary depending on the business structure of your LLC. See some quick bullet points below:

- Sole Proprietor or Partnership - Owners do not go on payroll or pay payroll taxes but instead take draws out of the company.

- Corporation or S Corp - Owners generally do go on payroll and pay payroll taxes. Depending on the revenue and structure of the company, owners may also be able to take draws and the owner should work closely with their accountant and payroll company to determine this.

When it comes to what is the best payroll system, I think you should use the following criteria to vet what works best for you:

1) Customer service - This is critical.

Are you paying for a do it yourself system that just does math for you? Or do you want a personal payroll representative to consult with?

Can you personally call your payroll rep with questions? Or are forced to review online support articles or wait on hold via a 1-800 hotline.

2) Cost/Value

Cash flow is crucial for small business. What value are you getting from your payroll system? Are you paying for bundled services that you don’t utilize or need?

3) Reliability

Did you know that even though you contract with a third party provider to deposit your tax payments for you, as the business owner, you are the one that’s on the line for penalties/interest if your tax filings and deposits are not paid timely and correctly?

Make sure you provider is knowledgeable and and has trustworthy credibility.

I hope this information helps. If you would like to personally chat, please give us a call

xxx-xxx-xxxx

~Christina and Kees with Payroll Vault

How should you pay yourself as a LLC and what payroll system is best to use for a small business?

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