Follow this step‑by‑step checklist to pay yourself correctly, minimize taxes, and protect your LLC.
Based on: Watch This BEFORE You Pay Yourself From Your LLC by Sherman - My CPA Coach
▶ Watch the source video on YouTube
What if the way you're paying yourself from your LLC is quietly costing you thousands of dollars every single year — and you don't even know it? Most business owners assume they're doing it right. They transfer money from their business account to their personal account and call it a day. But how you pay yourself is actually the single most important financial decision you'll make as a business owner, and getting it wrong can mean owing thousands in extra taxes, losing your legal protections, getting rejected for loans, or worse.
Here's the uncomfortable truth: self-employment tax alone can hit 15.3% on top of your federal and state income taxes. On $180,000 of income, that's nearly $28,000 gone — money that could stay in your pocket with the right structure. And if you're co-mingling your personal and business finances, you may already be eroding the legal shield your LLC is supposed to provide. These aren't rare edge cases. They're mistakes that real business owners — even high earners — make every single day.
Now picture this instead: you know exactly how to pay yourself based on your LLC type, you've set aside the right amount for taxes, your business cash flow is protected, and you've chosen a tax classification that actually fits your income level and goals. You're not guessing anymore. You're operating like a business owner who has a CPA in their corner.
That's exactly what Sherman from My CPA Coach delivers. As a practicing CPA who works with business owners on these exact issues daily, Sherman breaks down every major decision point — from owner's draws to S corp elections to C corporation strategies — in a way that's clear, actionable, and built around your real financial situation. His guidance has helped countless business owners stop leaving money on the table and start making smarter decisions with their income.
This checklist turns everything Sherman teaches in his must-watch video into a practical, printable action plan you can work through step by step. It covers every decision you need to make before you pay yourself a single dollar — your LLC classification, your tax obligations, your cash flow reserves, your payroll requirements, and your long-term compensation strategy. Stop guessing and start doing. Grab the checklist and get it right from day one.
Every checklist item comes with actionable notes to guide you — things like "Don't forget to do this before you start," "Avoid this common mistake," or "Set a reminder for 30 days out." Nothing vague, just clear next steps.
+ 14 more action items inside...
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