Episode 014 – Getting Paid: How To Pay Yourself (Part One)
About This Episode
Not sure how to pay yourself from your business? Or what to pay yourself? Or how much you should put to the side to pay income taxes?
There are a lot of percentages and formulas floating all around but is it right for you and your business? How can you be sure?
Deciding what you should pay yourself as a business owner can be a confusing matter to resolve but I’ve got you covered.
Note: This episode is especially for you if you’re a solopreneur (DBA/doing business as; sole proprietor or a single-member LLC treated as a sole proprietor). There’s a separate episode for business owners of corporations.
Mentioned in this episode:
- the question you should ask yourself BEFORE you start transferring money from your business
- the quick calculation you can use to figure how much to pay yourself
- The Pay Yourself Calculator (part of the Money Metrics Tracker Bundle)
Highlights of this episode:
- 00:38 Question: “How do I pay myself as a self-employed business owner?”
- 01:49 Why paying yourself depends on your legal & tax business structure
- 02:35 How to pay yourself if you are a sole proprietor, a DBA/doing business as or a single member LLC (treated as a sole proprietorship)
- 02:52 How to pay yourself if you’re anything else (multi-members LLC, partnership, S Corporation, C Corporation, etc), legal structures that are separate or treated as separate entities (continued in Episode 015)
- 04:05 More on how to pay yourself as a solopreneur (1040-Schedule C businesses)
- 05:07 What are the recommended distribution percentages
- 06:59 Why I recommend that you pay yourself from the very beginning
- 08:24 How often do you pay yourself