How to Pay Yourself From Your LLC in 2026 - Beginner's Guide

✅ Gusto Payroll: https://bit.ly/gusto-free I use Gusto for payroll in 2 of my businesses and it's my favorite one. Use this link to sign up for a free Gusto account and best possible pricing! ✅ Business Formation Guide (tons of discounts and my recommended resources): https://bit.ly/llc-guide-2026 In this video, I'm showing you how to pay yourself from your LLC. I take you through exactly what you need to know, and the best possible ways to take money out of your company/business to pay yourself. If you have an LLC and you’re just transferring money to yourself randomly… you might be doing it wrong. And it’s not because you don’t understand business. It’s because most people never learn that your LLC doesn’t actually determine how you pay yourself - your tax election does. And once you understand that, it completely changes how you should be paying yourself from your business.   ► Get access to my FREE side hustle courses: https://www.sidehustlemastery.com   My favorite finance + business products: 💳 My favorite credit cards: https://yourbestcreditcards.com/card-finder/?ccid=2004 🏦 Favorite online savings accounts: https://bit.ly/top-hysa-2026 📈 Get up to 12 Free Stocks on WeBull: https://bit.ly/webull-bonus 🖥️ Best AI website builder (Less than $3/month using code CHARLIECHANG): https://hostinger.com/charliechang 🥇 Hire the top 1% of overseas talent: https://paired.so/charlie   ► Join my FREE newsletter: https://buildabetterbusiness.co/subscribe   I’ve been paying myself from my businesses for over 10 years now, and honestly, this is one of those topics that confuses almost everyone in the beginning. A lot of people hear random advice online about owner draws, payroll, S-corps, distributions, and taxes… but nobody really explains how all of it actually works together in real life. So in this video, I wanted to break it down as simply as possible and show you the exact ways LLC owners actually pay themselves. I also walk through real tax examples comparing a sole prop vs an S-corp so you can actually see where the savings come from and when it even makes sense to switch. And because I know setup is usually the most overwhelming part, I included a full step-by-step payroll walkthrough using Gusto so you can follow along and get everything set up correctly without overcomplicating it. A reminder that I'm not a CPA or financial advisor - this is just my take and experience on paying myself :)   If you want to see more videos like this, check out my other videos:   Best LLC Formation Services to Start a Business for FREE!: https://youtu.be/FtIzQ5OM8_g How to Set Up an LLC Step-By-Step Affordably!: https://youtu.be/qu3GjPHKWic I hope you guys found this video helpful, and if you did, please SHARE it with a friend or family member who you think could benefit and also LIKE and subscribe for more videos like this in the future!   Thank you for watching, and I hope you have a wonderful rest of your day!   – Charlie   #llc #taxes #scorp   Timeline: 0:00 - Introduction 0:51 - Owner’s Draw vs Salary Explained 2:35 - How LLC Tax Classification Changes Everything 4:44 - Benefits of Electing S-Corp Status 8:42 - How to Pay Yourself With an Owner’s Draw 10:49 - Setting Up Payroll With an S-Corp 14:02 - Gusto Payroll Walkthrough 16:01 - Common LLC Payment Mistakes to Avoid 17:40 - Conclusion   Disclaimer: Some of the links above may be affiliate links, which means that if you click on them, I may receive a small commission. The retailers and financial services companies pay the commission at no cost to you, and this helps to support our channel and keep our videos free. Thank you!   In addition, I am not a financial advisor. Charlie Chang does not provide tax, legal or accounting advice. The ideas presented in this video are for entertainment purposes only. Please do your own due diligence before making any financial decisions.   ► My Instagram: https://www.instagram.com/charlie__chang/