Starting a business

For a sole-member LLC, a business bank account is a must, but a "set salary" is not necessary. You would pay yourself a dividend, which can be simplified to a simple "Owner Withdrawal" from the bank account. You must document when you do this. I simply put in the memo of the transaction "Owner Withdrawal". Also keep track of everything with accounting software.

For the fed, and most sane states, a single-member LLC is the same as a sole proprietorship. Which means income is passed through to your taxes. So you don't have to do much of the paperwork/hassle of a salaries. You still must keep your business and personal separate though, otherwise you lose your productions. Also note, in some states, single member llc's have been rendered worthless by the judicial system. Florida is one that comes to mind.

Not sure how insane states like CA does it, consult an accountant and a lawyer when setting up your business.

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