Hello everyone, I'm Attorney Aiden Kramer with the Law Office of Aiden H Kramer in Colorado. You're watching "All Up in Your Business". Since I receive a lot of questions, especially about single-member LLCs, I decided to dedicate a few videos to answer those questions. Single-member LLCs can be confusing to run as you may feel like you have more flexibility as the sole owner. However, there are still rules and laws that you need to follow. In this video, I will be addressing the most frequently asked question: how do you pay yourself in a single-member LLC? Before I delve into the answer, I must mention that the way you pay yourself in a single-member LLC can vary depending on whether or not you have elected to be taxed as an S corporation (S corp). If you're unsure about what an S corp is, I recommend watching my previous video titled "What the Heck is an S Corp?". It should clarify that for you. Now, let's discuss the graphics I've prepared to help explain the process of paying yourself in a single-member LLC. I've hired a high-quality graphics design company for this purpose and I hope you appreciate it. These graphics were quite expensive, but I believe they will greatly aid in your understanding. As shown in the graphics, we have two business owners who are sole owners of their respective single-member LLCs. One owner has chosen not to be treated as an S corp for tax purposes, while the other has elected to be taxed as an S corp. For the owner not treated as an S corp, any money that enters the LLC is considered personal income for the owner and is subject to personal income tax as well as self-employment tax. This can lead to a higher...