How do I actually pay myself?

It depends on one thing: how your business is taxed. Get that straight and the rest is simple.

If you are a regular LLC: take a draw

There is no paycheck and no withholding. You transfer money from the business account to your own, and that is it. The IRS does not treat that transfer as income — you are taxed on the business’s profit whether you take the money out or leave it in.

The catch is that nothing is withheld for you. You are responsible for setting money aside and paying estimated taxes four times a year.

If you elected S-Corp: run payroll

Now the rules change. The IRS requires you to pay yourself a "reasonable salary" through actual payroll, with taxes withheld, before you take any additional profit. This is not optional — it is the trade for the tax savings.

• A reasonable salary is what you would have to pay someone else to do your job. For most owner-operators that is somewhere between $40,000 and $70,000.
• Pay it on a regular schedule — monthly or twice monthly is normal.
• Anything above the salary can come out as a distribution, which avoids self-employment tax. That is where the savings live.

Set the salary too low and the IRS can reclassify your distributions as wages, with penalties. Set it too high and you have given away the savings. This is why the number is worth getting right rather than guessing.

Either way: keep the accounts separate

Never pay a personal bill straight from the business account, and never buy inventory on your personal card. Move money between the accounts deliberately and the paper trail stays clean — which protects both your taxes and your liability wall.