Paystubs for Self-Employed — Prove Income Without W-2s
Professional income documentation for business owners, sole proprietors, and independent contractors. Accepted by mortgage lenders, landlords, and financial institutions.
When Self-Employed Can Use Paystubs
As a business owner, you can pay yourself a salary or regular draws. Paystubs document these payments in standardized W-2 format that lenders and landlords recognize, even though you're self-employed. This proves consistent income from your business operations.
Mortgage lenders and banks prefer W-2 format because it's standardized and easy to verify. Even for self-employed individuals, presenting income in familiar paystub format alongside tax returns strengthens your application and speeds up the approval process.
Self-employed individuals don't receive traditional W-2s from employers. Instead, you can generate professional paystubs that document your business income in a format that satisfies lender requirements for mortgages, car loans, and rental applications.
Mortgage lenders typically require 2 years of tax returns for self-employed borrowers. Adding recent paystubs showing current income helps demonstrate your business remains profitable and can strengthen your loan application, especially if income has increased since last tax filing.
Common Self-Employment Income Documentation Challenges:
- No employer to verify income: You ARE the employer, making traditional verification impossible
- Tax returns show net profit after deductions: Doesn't reflect actual cash flow or gross revenue
- Business expenses reduce taxable income: Makes it appear you earn less than actual cash flow
- Seasonal or variable income patterns: Some months strong, others weak, making qualification difficult
- Business structure complexity: LLC, S-Corp, sole proprietor income flows differently
- Bank verification rules vary: Different lenders have different self-employment requirements
Business Structures That Benefit From Paystubs:
What Information Should Be on a Self-Employed Paystub?
Document your business income in professional format that lenders and landlords understand
Required Information:
Your LLC, business name, or "Self-Employed — [Business Type]"
Owner name and business address
Regular payments you take from business profits
Weekly, bi-weekly, or monthly payment schedule
Additional Details:
Revenue or owner's draw amount before deductions
Estimated quarterly tax withholding (15.3%)
Self-paid insurance if applicable
Amount deposited to personal account
LLC vs Sole Proprietor Income Documentation
LLC/S-Corp Owners:
- • Use your LLC name as employer
- • Can show W-2 style salary to yourself
- • Include profit distributions if applicable
- • Deduct business expenses properly
- • More credible with lenders due to structure
Sole Proprietors:
- • Use "Self-Employed" or DBA name
- • Show owner's draws as income
- • Net profit = your income
- • Simpler structure, less paperwork
- • Supplement with Schedule C from taxes
Self-Employed Paystub Examples
Professional templates for business owners and sole proprietors
LLC Owner Paystub
Monthly owner's salary
Smith Consulting LLC
Employer (Your Business)
John Smith, Owner
Employee Information
Pay Period: Monthly
January 1-31, 2024
Owner's Salary (Gross)
$8,500.00
Deductions
Self-Employment Tax: $1,300.25
Health Insurance: $450.00
Net Pay: $6,749.75
YTD: $6,749.75
Example: LLC owner paying regular salary
Sole Proprietor Paystub
Owner's draw documentation
Jane Doe Freelance Design
Sole Proprietor
Jane Doe, Owner
Self-Employed
Pay Period: Bi-Weekly
Jan 1-14, 2024
Business Income (Gross)
$4,200.00
Est. Self-Employment Tax
$642.60 (15.3%)
Owner's Draw: $3,557.40
~$7,700/month average
Example: Sole proprietor owner's draw
How to Create a Paystub as a Self-Employed Individual
Document your business income for mortgage applications, rentals, and financial verification
Determine Your Business Structure
Identify whether you're an LLC, S-Corp, sole proprietor, or partnership. This determines how you list your "employer" and what type of income to show. LLC owners can pay themselves a W-2 style salary. Sole proprietors show owner's draws from business profits. Understanding your structure helps create accurate, verifiable documentation.
Calculate Your Regular Income
Review your business revenue and determine what you regularly pay yourself. For consistency, calculate an average monthly or bi-weekly amount based on the past 6-12 months of business income. This should align with what you report on Schedule C of your tax returns. Lenders look for stable, consistent income patterns when evaluating self-employed borrowers.
Set Up Your Business as Employer
Enter your business name (LLC, DBA, or "Self-Employed — [Your Business Type]") as the employer. Include your business address, EIN if you have one, or note "Sole Proprietor." Then enter your personal information as the employee. This structure shows you're paying yourself from legitimate business operations, which is exactly what lenders want to see.
Account for Self-Employment Taxes
Self-employed individuals pay both employer and employee portions of Social Security and Medicare taxes (15.3% total). Include this as a deduction on your paystub along with estimated federal and state income tax withholding. If you pay self-employed health insurance, include that too. Your net pay should match what you actually deposit from business to personal accounts.
Generate Multiple Periods for Consistency
Create 3-6 consecutive months of paystubs showing regular income patterns. Lenders want to see consistency in self-employed income. Use these paystubs alongside your tax returns (typically 2 years required), profit and loss statements, and bank statements. The combination of documentation proves your business generates stable income sufficient for mortgage or rental qualification.
Best Practices for Self-Employed Paystubs:
- • Match your tax returns: Income should align with Schedule C profit or K-1 distributions
- • Show realistic deductions: Include appropriate self-employment tax and business expenses
- • Be consistent across months: Similar amounts each period demonstrate stable business
- • Use professional business name: LLC or DBA name adds credibility
- • Keep business bank statements ready: Lenders may request verification of deposits
- • Have profit/loss statements available: Additional proof of business income
- • Prepare 2 years of tax returns: Standard requirement for self-employed mortgage applicants
Benefits for Self-Employed Individuals
Professional income documentation that financial institutions understand and accept
Supplement your tax returns with current paystubs showing recent income. Helps mortgage underwriters see your business remains profitable, especially if income has grown since last tax filing. Demonstrates consistent cash flow in familiar W-2 format lenders prefer.
Landlords understand paystubs better than tax returns or profit/loss statements. Present your self-employed income in standardized format that property managers recognize. Speeds up approval process and eliminates confusion about business vs personal income.
Clearly show how much you pay yourself from business profits. Provides transparent record of owner compensation that banks can verify against business bank statements. Essential for proving take-home income that differs from tax return net profit.
Demonstrate income increases that occurred after your last tax return. If your business has grown significantly, current paystubs show lenders your improved earning capacity. Critical for maximizing loan amounts based on present income rather than historical tax data.
Well-formatted paystubs signal that you run an organized, legitimate business. Establishes professional credibility with lenders and landlords. Shows you treat your business seriously with proper financial documentation and structured compensation.
Familiar paystub format speeds up underwriter review. Rather than deciphering complex tax returns and business statements, lenders can quickly verify income from standardized documentation. Reduces back-and-forth and accelerates approval timeline.
Self-Employment Income Verification Scenarios:
Mortgage/Home Loan:
- • 2 years tax returns (required)
- • Current year profit/loss statement
- • Recent paystubs (3-6 months)
- • Business bank statements
- • CPA letter if available
Rental Applications:
- • Recent paystubs (2-3 months)
- • Previous year tax return
- • Business license or DBA filing
- • Bank statements showing deposits
- • Letter explaining business structure
Frequently Asked Questions for Self-Employed
Related Resources
Explore more paystub solutions for your specific needs
Ready to Document Your Self-Employment Income?
Create professional paystubs that strengthen your mortgage, rental, and loan applications. Accepted by lenders nationwide.