[CountryatHeart]

My husband has his own business (LLC) and asked me to start doing the administrative things. I can pay the billings, invoice, and other misc things, but when it comes to figuring out his pay, I don't understand. He gets a draw. How often, what taxes do I take out, how do I figure tax %. Can someone help me understand? There is no employees, just my husband? What taxes should he be paying?

[MukatA]

How is the LLC being treated? Sole proprietorship, partnership or corporation?

If your husband is a sole proprietor, he will report income and expenses on schedule C (Form 1040).

[AtlantaTaxExpert]

Your situation screams for professional tax help.

Any local tax professional can give you a quick training session on how to figure his pay and, if a sole proprietorship, how to make estimated tax payments.

If the LLC is a corporation, different rules apply which are a bit too complex to go into here.

[CountryatHeart]

The company is a prtnership. (The other partner bought out) I have 1040-ES coupons to fill out quarterly.

[AtlantaTaxExpert]

If the other partner bought out, then the partnership has been dissolved. Assuming that partner bailed in 2008, then 2008 will be your LAST year filing as a partnership.

Starting in 2009, the business becomes a sole proprietorship unless you take action to make it a corporation or another partner is found.

As for the draw question, the income probably should be treated as salary, with the appropriate payment of employment taxes (Social Security, Medicare, unemployment) and withholding of income taxes by the partnership.

[CountryatHeart]

Thanks for your help!

[AtlantaTaxExpert]

Glad to help!