| LLC: Can the owner go on the payroll? |
Lauren (bowling alley owner) asks:If an LLC elects to be taxed as a corporation, can the owner be put on the payroll?
Answer:Lauren, yes, the owner can be put on payroll (must be put on payroll in fact). But this is only possible because of the corporate taxation election. For LLCs taxed as sole proprietorships or partnerships, owners (called “members” technically) cannot go on the payroll.
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