Payroll and Direct Deposit for Single Member LLC
brahman
Member Posts: 1
I'm new to Wave – just getting set up today. One of my main motives for signing up is finally being able to direct deposit my owner's draw from my business account to my personal account. It's the 21st century, but I'm still banking like it's the 1980s...
Midway through Payroll setup I hit the Tax Profile page and I'm stumped. I don't do withholding – no one does with a single member LLC treated as a disregarded entity. I don't have a state withholding permit number, as far as I know...
What do I enter here? How do I get past this step? Wave doesn't automatically deduct non-existent withholding from payroll, does it?
Other threads here point to users doing exactly what I'm doing, so someone must have solved this problem, right?
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Comments
@brahman,
As a single member LLC you cannot put yourself on payroll. You are considered self employed. Self employed individuals take draws. An alternative is to elect to be treated as an S-Corp. That entity structure deems working owners as an employee. However, S-Corps come with additional compliance over a single member LLC. You would need to determine whether that is the appropriate move for your circumstances.