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Situation

Let's say my organization does pro bono work for company X - a non profit

I pay 3 employees Y amount and can write that off to the Federal Government

Question

I'm in a pass-through LLC, will I still be able to pay myself? Assume that all employees including myself get equal pay.

marked as duplicate by TTT, Nathan L united-states Aug 1 '18 at 19:49

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    What do you imagine would be the benefit of doing so? – Hart CO Aug 1 '18 at 14:07
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    @HartCO to be able to donate time, instead of money, to non profits we believe in while also reducing our company's year-end tax burden. – Jacksonkr Aug 1 '18 at 14:10
  • Paying yourself has no tax consequences for a pass-through LLC. You can pay yourself or not pay yourself as much or as little as you want whenever you want and it will have no effect on your taxes since you and the LLC are legally the same, it's like moving money from one pocket to another. – David Schwartz Aug 1 '18 at 18:56
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If you pay yourself, that money would be taxable income to you, then the LLC has an equal off-setting expense, so there would be zero net impact if you pay yourself in a pass-through entity (single-owner at least).

You also can't assign a value to your time and count that against earnings without actually spending it. The IRS doesn't really care about your time, just your actual expenses and revenue.

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