LLC vs S-Corp: The Right Way to Pay Yourself (Salary, Draws, Distributions)
How do you pay yourself in 2026 without wrecking your cash flow or creating tax problems?
In this video we're breaking down owner draw vs salary in plain English, and exactly how the rules change based on your entity type. LLC, S corp, LLC taxed as an S corp. We'll walk you through the clean method I use with clients to set a reasonable salary, take distributions the right way, and avoid the common red flags that get owners into trouble.
In this video we'll chat about:
Owner draw vs salary, what each one actually means
What you can do as an LLC, and what you must do as an S corp
Reasonable compensation in 2026, what it is and what the IRS looks for
My step by step process to set your salary using real market benchmarks
Structuring salary plus distributions so your books stay clean and your pay stays consistent
The biggest owner pay mistakes I see, and the simplest setup going into 2026
If you want more straight talk on cash flow, taxes, and proactive finance, subscribe and check out the other videos on the channel.
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