1d • 🚦General
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.
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How Business Owners Can Set Up Payroll for Themselves
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