Getting Paid: The Final Step of Your Business Setup
You’ve formed your Delaware LLC, opened a U.S. bank account, and started receiving payments in USD. Now comes the most important question: How do you legally move that money into your personal pocket?
For non-U.S. residents, the process is straightforward, but you must categorize the transfer correctly for accounting purposes.
1. Member Draws (The most common way)
Since a single-member LLC is a “disregarded entity” for tax purposes, the money in the business account is technically yours. You can simply transfer funds from your U.S. Business Account to your Personal International Account.
- Accounting Tip: Label these transfers as “Member Draw” or “Owner’s Distribution.” It is not a “salary” (which would require payroll taxes), but a distribution of profit.
2. Using a Global Payment Provider
If your local bank has high fees for receiving USD, many entrepreneurs use platforms like Wise, Payoneer, or Revolut Business.
- Transfer from your U.S. Bank (Mercury/Relay) to your Wise USD balance.
- Convert to your local currency at a better rate.
- Withdraw to your local bank account.
3. Reimbursable Expenses
If you used your personal money to pay for your LLC’s formation or a software subscription, you can pay yourself back. This is not “income”; it is a reimbursement. Make sure to keep the receipts for your accounting records!
Important: Keep a Paper Trail
Even if it’s “your money,” never mix personal and business expenses.
- Use your business card only for business.
- Transfer a lump sum to your personal account when you need to pay yourself. This keeps your “Corporate Veil” strong and protects your personal liability.
