Legal Question in Business Law in New Jersey

I formed an LLC with 3 other people in new jersey, my question is; do we pay ourselves as employees with payroll checks or do we just cut a check from the business account?


Asked on 2/06/13, 3:30 pm

1 Answer from Attorneys

Barry Gartenberg Barry F. Gartenberg LLC

You'd be better served if you direct that question to your company CPA. If you don't have one, you probably should. That being said, in general, LLC members are regarded as self-employed and, accordingly, should not be compensated via "W-2 type" paychecks. Normally, a "draw" or distribution can be taken via a company check.

Kindly note and remember that my response is merely a general comment on the law related to your question, and NOT legal advice or opinion. Also, your question and my response does NOT create an attorney-client relationship between us. You cannot rely upon what I have written, because I do not have all of the information that I need to advise you or render an opinion. Even simple facts you have not shared can completely change my answer. For me to give you legal advice or opinion, you would need to hire me to be your lawyer, and then we would need to discuss this in detail and go over the documents.

Please visit my website! www.bgartenberg.com or call me 973-921-0600 if you�d like to learn more about me or my practice. Thank you.

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Answered on 2/07/13, 6:05 am


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