Paying Myself As an Employee

I want my business to pay me $1000/month as regular income.  This will be my starting pay until the company is bringing in revenue.

What do I mean by “regular income”?  By this, I mean that I will be paid as an employee and receive a paycheck with all of the usual State, Federal, Social Security taxes deducted from the check.  I will also receive a W-2 form at the end of the year.

Why do I want to do this?  To show consistent income for the purpose of getting loans or applying for credit.  I will also receive dividends as will the other owners and investors in the company.  Dividends are taxed differently from regular income.  They are taxed at a lower rate.

Making It Easy With Payroll Apps

In order to make that happen, I am looking at payroll apps or software that will handle the state, federal and social security tax withholdings for small businesses.  So far, it looks like Gusto may be the platform for me.  They are offering a one month free trial and then it will be $39/mo plus an additional $6 per person per month.

Setting Up A Virtual Office

As I was filling out the forms for my trial month, I realized that it is time I set up a Wyoming address for my Wyoming LLC in order to not be considered a California Business, and have to pay CA corporate business tax.

I found a company that will provide me with a registered agent and a virtual Wyoming office, complete with Wyoming mailing address and Wyoming phone number.  All this for $30/month!  Really?  I must check this out!

The Set-Up

So, I have set up my virtual office in Wyoming.  The cost for setting up were: