![]() Yes. Even though the IRS ignores the LLC structure when it comes to taxation, don’t worry-you still get the benefits of personal asset protection and deduction of business expenses. If the IRS treats my single-member LLC as a disregarded entity, do I still get the benefits of being an LLC? This process is explained more in our How Do I Pay Myself From My LLC guide. You will have to pay self-employment taxes on your distribution but, because you already paid income tax on the LLC’s total profits, you do not have to pay income tax on the distribution. With your LLC income, you can pay yourself with a distribution. The LLC’s income is reported on your personal tax return at the end of the year. Single-member LLCs are taxed by the IRS as “Disregarded Entities.” This just means the IRS ignores the structure of your business (i.e., the fact that it's a single-member LLC) and taxes you like it does a sole proprietorship.
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