I've recently started an LLC and need to pay myself and my co-founder a small salary. We don't have a book keeper yet, and all money is coming out of my accounts/credit cards. Where can I find information on the necessary legalities such as mandatory withholding, or how salary expenses are deducted on taxes?
Personally, I would hire a good CPA. There is only so much an entrepreneur has time for. And this is, while extremely important like so many aspects of entrepreneurship and the start up, is so below where your focus as the CEO should be. Have a general understanding of what your business needs to do and then let a CPA help you out. Unless you have time on your hands. But the risk reward....pay someone a couple thousand to oversee, or lose x hours that could be used toward securing $10-20k worth of revenue.
A couple of questions: Are you paying your salaries out of gross profits or from investment capital? In which state are you working and incorporated (the rules differ)? How you book those items will depend on A and B. But can setup Quick Books and use Intuit to handle payroll taxes if you are not seeking to hire a decent bookkeeper. There are other online software options to QB also.