[76ink]

How should I pay myself?

 

[20vK]

I take the minimum out possible. If you're making good money, put a bunch aside for a rainy day. Then put the rest back into the business to grow..... If that's what you want to do.

If you're happy with what's coming in, then act accordingly.

 

[binki]

Why else would you do this?

 

[76ink]

Well you can take a draw.. Or c-corp declare divindensd

 

[jeron]

I would ask your tax guy which is best for you and your situation

Thanks,
Jeron

 

[20vK]

Well you can take a draw.. Or c-corp declare divindensd

If you're making money then it's often a balance between corporation tax, "expenses", personal income tax on salary and capital gains. There will be a balance point between the various taxes for your unique situation that will minimise your overall tax.

Throw in asset costs and respective depreciation, along with "charity" offsets and your initial question leads to an accountant, IMHO. Simply because every company is different. I don't think we can really answer what started as a 2 line question, since there are too many variables. You should really consult an expert.

 

[shreddedwheat]

perfect question for your accountant or tax person. Depends on how you are set up. If you're a sole proprietor, you can take a draw anytime you want/need to. For a long time, I didn't take anything regularly, but would take a hefty lump sum once a year when I knew my forecast and had a detailed and complete P&L. If you're set up as LLC or INC, different situation. Regardless, if you aren't paying yourself, why would you keep working?

 

[olga1]

Yes you should. I pay myself every Friday.

 

[genesissat]

Ok so there are many answers but overall it depends on how your business is set up, would anyone care to share how long it took them to actually start paying themselves or i guess the question should be stated. How long did it take for you to see a profit?

 

[Inspired Buffalo]

I never have paid myself. 2 years now.

That is how long I have been at it. We have grown alot this past year but I would still say I am breaking out even at this point.

I planned on 5 years. I never printed anything in my life when I started. Never ran a business. Started from scratch with everything.

It is quite an education.

 

[jeron]

I never have paid myself. 2 years now.

That is how long I have been at it. We have grown alot this past year but I would still say I am breaking out even at this point.

I planned on 5 years. I never printed anything in my life when I started. Never ran a business. Started from scratch with everything.

It is quite an education.

If you don't pay yourself something how do you survive? Second job? Spouse?

Thanks,
Jeron

 

[Inspired Buffalo]

No

I retired from a state job a year ago.

I have a pension. Without it I never would have tried this.
If this was my only source of income I would have starved a long time ago