Payroll service?

A W2 / LLC arrangement makes it possible to issue a portion of your pay as Per Diem. It also allows you to avoid Self Employment taxes for income over average driver pay (say $60,000). Also worth investigating SEP eligibility under both scenarios.

 

I do everything through my CPA. I’m paid via w-2 and get paid every other week because it’s cheaper than getting paid every week.

 

My local guy just charges me $11 a month to run my payroll on w2. I only pay myself once per month salary always the same.

 

I've been using intuit payroll for the last 10 year. Not the cheapest route but its worth the piece of mind knowing everything is filed and legit.

 

Since it’s just you in your LLC, you don’t need a payroll system. The IRS sees a single-member LLC as “disregarded,” which basically means your business income goes straight onto your personal taxes. You can just take money out whenever you want as an owner’s draw, and that is completely legal (IRS Publication 3402).

Using something like Paychex or Gusto only makes sense if you want regular paychecks or plan to hire people down the line. It’s nice, but not necessary right now.

You also can’t 1099 yourself. The IRS expects payments to yourself either as draws or, if you choose S-corp status, as a proper salary with payroll taxes taken out (IRS Publication 15).

So for now, just take draws. It’s easy, safe, and keeps your taxes simple.