Blog

Best Way To Pay Yourself As The Business Owner

by tanzeela November 20th, 2019 | Share

Determining how to pull money from your business is a critical step in small business ownership. Whether you take a draw or a salary, makes little difference if you are a sole proprietor. A combination of salary and draw is typically how most small businesses start. When the business is doing well, the draw can be easy to utilize, but remember that the business will need cash flow when times are leaner, so overdrawing on the business can cause issues down the road. That’s where a controlled salary can help keep cash in the business and make it less tempting to take more cash out of the business than you really need. The owner’s draw is also taxable on the owner’s personal tax return and owners must make estimated tax payments and self-employment taxes on any draws.

About the Author

tanzeela

tanzeela desritopin

See all blogs
Share

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Articles

The New Tax Act – What It Means To Small Business

Determining how to pull money from your business is a critical step in small business ownership. Whether you take a draw or a salary, makes little difference if you are a sole pro


Navigating the Treacherous Waters of Small Business

If you own a small business, you’ve no doubt seen those ads promising quick and easy small business loans, usually for large dollar amounts. Should you really take out such a lo


Best Way To Pay Yourself As The Business Owner

Determining how to pull money from your business is a critical step in small business ownership. Whether you take a draw or a salary, makes little difference if you are a sole pro