You can pay yourself from your LLC as often as you like-as long as the method and frequency align with your tax classification and the LLC’s cash flow.
One of the benefits of owning an LLC is the flexibility it offers when it comes to compensating yourself. Unlike employees on a fixed payroll schedule, LLC owners can decide how and when to take money from the business. But how often you should pay yourself depends on how your LLC is taxed, how much your business earns, and how consistent your cash flow is.
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1. If You’re a Single-Member LLC
By default, a single-member LLC is taxed as a sole proprietorship. This means you don’t take a traditional paycheck. Instead, you take owner’s draws-transferring money from the business account to your personal account. There’s no requirement from the IRS on how often you must do this.
Best practice:
- Set a regular schedule (weekly, biweekly, or monthly) so your finances remain predictable
- Avoid withdrawing too much too often-leave enough for taxes and business expenses
- Document each draw in your accounting software
Whether you pay yourself $1,000 every Friday or $4,000 once a month, the IRS only cares about your total business profit for the year-not the timing of the withdrawals.
2. If You’re a Multi-Member LLC
Multi-member LLCs are typically taxed as partnerships. Each member receives distributions based on the ownership percentages outlined in the operating agreement. Like single-member LLCs, there’s no IRS-mandated schedule.
However, it’s smart to align distributions with:
- Quarterly or monthly profit reviews
- Cash flow availability
- Agreements between members to avoid conflict
Make sure distributions are proportional and well-documented to avoid misunderstandings or tax issues. If members receive unequal or irregular distributions, update your operating agreement to reflect that structure.
3. If Your LLC Is Taxed as an S Corporation
LLCs that elect S Corp tax treatment must follow a different approach. If you actively work in the business, you’re required to pay yourself a reasonable salary through payroll-and that means a set schedule.
Your salary should be:
- Processed through a formal payroll system
- Subject to payroll taxes and tax filings
- Paid regularly-usually biweekly or monthly
Beyond the salary, you can also take owner distributions, which are not subject to self-employment tax. These can be taken as needed, provided the LLC has enough profit after expenses and salaries.
4. How to Decide on a Payment Schedule
Regardless of your tax structure, there are a few key factors to consider when deciding how often to pay yourself:
- Cash flow: Make sure the business can support consistent payments
- Budgeting: A regular payment schedule helps with personal financial planning
- Taxes: Setting aside a portion of each draw for taxes helps you avoid a large bill at the end of the year
- Professionalism: Consistent payments help you treat the LLC like a real business
If your income is seasonal or unpredictable, consider paying yourself a conservative base amount regularly, then take additional draws or distributions when profits allow.
5. What to Avoid
There’s no legal rule preventing you from taking daily or one-off withdrawals, but doing so can create bookkeeping headaches and cash flow instability. Avoid:
- Withdrawing money impulsively without checking account balances
- Failing to set aside money for quarterly taxes or future expenses
- Using business funds for personal expenses directly (always transfer funds first)
The more you treat your LLC like a real business-with scheduled payments and clear records-the better protected you’ll be from tax and liability issues.
You can pay yourself from your LLC on a schedule that works for your lifestyle and business, as long as you follow the rules tied to your tax classification. Regular payments help create stability, simplify your taxes, and demonstrate that you take the business seriously. Whether it’s weekly, biweekly, or monthly, consistency and documentation are key to staying compliant and running your LLC efficiently.
