LLC Sole Proprietors and 1099 Independent Contractors Now Qualify for a PPP Loan — You Need to Learn About Owner Compensation Replacement | The Best Words

I am not scintillated by the details of tax policy, so when I first heard the term owner compensation replacement, I paused just to think about what that might mean.

In general I am unlikely to engage in a lengthy debate about the nuances of tax rates, or shelters for certain funds, and despite some effort on my part I still can’t fully explain how an NFT works or even what it IS, except I will engage with the word “fungible.” I’m far more interested in helping people learn from my mistakes.

However, when the first round of PPP loans came, I was curious what might be in store for me. After all, I was a very new business owner having started writing for a living in 2018. So in 2020 when everything shut down and large companies were getting bailed out, I poked around to see what might be in there for a sole proprietor.

There was nothing.

The Payroll Protection Program was designed to do one important thing: help companies maintain payroll for their employees even during a time when they had to be shut down because of the pandemic. It provided up to three months’ worth of “payroll protection.”