LLC members are generally not considered employees and typically do not receive a W-2. Instead, their income is reported as self-employment income on Schedule C or Schedule E. However, in certain situations—like if the LLC elects S Corporation status—a member who also works in the business may receive a W-2 for their employee wages. Understanding when and how W-2s apply can help you avoid IRS issues and ensure proper tax reporting.

Deciding where to form your LLC isn’t just about low filing fees or tax perks—it depends on your business’s operations, goals, and long-term strategy. This guide breaks down 10 key factors—from state laws and taxes to legal protections and business climate—to help you choose the best state to start your LLC.

Wondering how much you should pay yourself from your LLC? While there's no fixed rule, your draw or salary should reflect personal financial needs, business profitability, growth goals, and tax considerations. Learn how to determine a smart and sustainable compensation strategy for your LLC.

Yes, a sole proprietor can use a personal bank account for business, especially in the early stages. However, using a separate business account offers key advantages, including easier bookkeeping, improved tax compliance, and a more professional image. Learn the pros and cons of each option and when it's time to switch to a dedicated business account.

Looking to form an LLC in a tax-friendly state? Nevada, Wyoming, and South Dakota top the list with no state income or franchise taxes, making them ideal for minimizing costs. Learn which states offer the lowest LLC taxes and what other factors you should consider before choosing where to register your business.

Yes, business owners can pay themselves through payroll—especially if operating as an LLC (electing S Corp), S Corporation, or C Corporation. Setting up payroll involves registering for an EIN, withholding taxes, and following employment laws. Learn the 12 steps to start paying yourself legally and efficiently.

Yes, the IRS can subpoena your QuickBooks Online records during an audit or investigation. A subpoena is a legal order that compels individuals or businesses to provide financial documents, including those stored in accounting software like QuickBooks. If you're served with one, it’s critical to understand your rights and consult a tax professional.**

Small business ownership offers many benefits but also comes with challenges. Common disadvantages include financial uncertainty, work-life imbalance, limited resources, and high levels of stress and responsibility.

You can use your business bank account to pay for a wide range of legitimate business expenses—like rent, payroll, marketing, supplies, and taxes. Keeping personal and business expenses separate is crucial for accurate bookkeeping, tax deductions, and legal protection.

Managing personal and business accounts separately is vital for financial clarity, legal compliance, and long-term success. This guide covers essential steps to efficiently handle both accounts, including budgeting, record-keeping, tax management, and when to seek professional advice.