Paying Yourself a Salary Through a Self-Owned Company: How Sole Proprietors Can Legally Obtain Pay Stubs
A sole proprietor asks whether they can use a payroll company to issue regular wages to themselves and obtain pay stubs, as well as how it is handled for tax purposes. Based on available information, this article outlines relevant operational points and structural options.
Hello everyone, I am here seeking some professional advice and hope to get help from all of you.
I have a brief question: If my business operates as a sole-proprietor, and I want to regularly pay myself a salary from my own company and use this as proof of income (i.e., pay stubs), can I hire a payroll service company to assist with this process?
After looking into several payroll companies, I found that most of them withhold taxes on the pay stubs. As a business owner, when I pay myself a salary, how should this withholding mechanism work? Additionally, do I need to register my company as an LLC or another type of business entity to achieve the above?
Thank you all for your answers.