How Business Owners Can Set Up Payroll for Themselves
(As a Manager With a Set Salary) 👉1. Form the Proper Business Structure To run payroll for yourself, you typically need to be structured as: - LLC taxed as an S-Corp - S-Corporation - Corporation (A standard LLC taxed as a sole prop can’t put the owner on payroll — only owner draws.) 👉2. Set Up an Employer Payroll Account Business owners must: - Register for EIN (if not already). - Register with your state workforce/department of labor for payroll withholding. - Set up state unemployment insurance account. - Choose a payroll software 👉3. Determine Your Salary You choose a reasonable salary for the “manager/executive” role you hold in your company.Common range for first-year owners: $24,000–$60,000/yr depending on revenue. 👉4. Run Payroll Your payroll software will: - Withhold taxes - Issue pay stubs - File payroll tax returns (941, state returns, unemployment, etc.) You get paid like an employee, through direct deposit — steady and predictable.