I’ve been asked in several instances how and when a business owner ought to pay themselves. This depends on a few things: the type of entity you manage, your amount of profits, and how much income is required for your personal life.
I will explain the details of paying oneself as a business owner in a series of blogs. In each, I will cover several different subjects, beginning with the type of entity. These include a sole proprietorship, an LLC, and an S corporation. I will also explain how you should pay yourself, how to schedule payments, whether you should use payroll for yourself or draw from profits, and finally, how it will be taxed on your personal tax returns.
Stay tuned for more information on paying yourself as a small business owner!
