as an owner how much do you pay yourself

[smarino21]

I was wondering how do you guys that are owners that dont do the labor work your self, pay your self? I dont really have a set schedule of payment for myself but i was thinking taking x amount per week during cutting season. Any one do anythin differnt?

[rodfather]

% of Gross Revenue

[chipk1]

Fixed weekly amount and then quarterly bonus after everything is payed.

[bobw]

nothing for the season, whatever is still in the bank after that.

[topsites]

{Gross deposits + (savings + interest)} - {expenses + %taxes + retirement savings} = my money

Roughly speaking, the accountant always explains it better :laugh:

[Mow Right]

I am still waiting to make any money....

[tthomass]

I just make draws on my business account (rent and credit card is all)...........add them up at the end of the year, write myself a check and deposit that check back into the account to show a record of payment or "income". On average $1200-$1500 a month is all I pay myself after taxes. I keep the rest in the business.........it doesn't do anything sitting in my personal account.

[Gatewayuser]

After expenses, payroll, payroll taxes and putting money in the business savings I will take a check next year of around $1000-1200 per week that way I have a w2. Or $30 per hr with the other $20 per hr going to the biz. Now if you don't have employees and your only self employed it would make no sense to do that. It almost does not for me. I employ 3 next year 4-6.

[Husky05]

My business is set up as an LLC. I pay me self each quarter a wage that my accountant and I came up with. I did these for myself this way for two important reasons. I pay myself a low wage because I do want to be hit with large income taxes. When you are set up as a corporation, or LLC you can use give yourself distrubutions throughout the year which are not subject to social securty taxes, that is how I make up for the low wages. Finally, I own a commerical garage where I run my business out of. I lease the garage to my business, so every month my business writes a check to me. Its kinda chinease book keeping but it definitely gets me around from paying lot of taxes.

[DFW Area Landscaper]

Setup as an LLC but taxed as an S Corp with the IRS.

Salary of $40,000 per year to run the office and make decisions paid monthly.

The rest is a dividend.

Later,
DFW Area Landscaper

[pclawncare]

i do everything my self so i get all the money

[MarkintheGarden]

My business is set up as an LLC. I pay me self each quarter a wage that my accountant and I came up with. I did these for myself this way for two important reasons. I pay myself a low wage because I do want to be hit with large income taxes. When you are set up as a corporation, or LLC you can use give yourself distrubutions throughout the year which are not subject to social securty taxes, that is how I make up for the low wages. Finally, I own a commerical garage where I run my business out of. I lease the garage to my business, so every month my business writes a check to me. Its kinda chinease book keeping but it definitely gets me around from paying lot of taxes.

What does your accountant think of the property lease?
I think it is legal, curious if your accountant agrees. I have considered the same arrangement.

There is legal and not legal, I don't think there is any such thing as chinease!
This is your money not uncle sam's any legal strategy to keep it is a good strategy.

[Husky05]

What does your accountant think of the property lease?
I think it is legal, curious if your accountant agrees. I have considered the same arrangement.

There is legal and not legal, I don't think there is any such thing as chinease!
This is your money not uncle sam's any legal strategy to keep it is a good strategy.
__________________

My attorney was acutally the person that should me the idea with the property lease. It is not against the law and the reason is my business is set up as an LLC. That is a limited liability corporation meaning that the state views my business entity as a person. (Not a human being, but a separate enitiy) Even though I own the business I have limited liability because it is a corporation. My personal assests can not be lost to liabilities within my business, meaning if I were to get sued or injury someone, I can not lose my personal assests just the things that are my actual business name. This is the reason I chose this method as opposed to a sole propiertior. And there are also huge tax advantages such as the property lease. Since my business is a separate enitity it is alloweed to rent or own property. So I rent my business to the building that I own. I know can take money out of business in the form of a business check and deposit it in my own personal checking account as rental income, which is only subject to federal income tax instead of social security, medicare, and all the other B.S. people have to pay into. For my specific situation this is the best scenerio and tax advantage for me, this same idea may or may not be the same for you. The best thing to do is schedule a meeting with an attorney and/or your accountant and see what you can do. I know what I just wrote my be jumbled, let me know if you want to know anything else.

Also what I meant about chinese book keeping is, each month I have to write a check from my business account to myself and endorse it with the same name. The first few times I went into my bank the teller just looked at me like I was nuts. LOL

[Uranus]

HOLY CRAP! I can pay myself. Wish I knew that back in june when my snowmobile got repoed.:cry:

[TJLANDS]

Finally, I own a commerical garage where I run my business out of. I lease the garage to my business, so every month my business writes a check to me. Its kinda chinease book keeping but it definitely gets me around from paying lot of taxes.

You do know I'm sure that the checks the company(your LLC) writes to you still is considered income on the other end. (the garage).

[Husky05]

Yes it is income, but it is rental income which is subject to different taxes

[Stillwater]

I don't pay myself in the tradishional sence, the money the business makes belongs to me so I am paid already.

But in reality the business useally makes 3 times the amount I draw sometimes more. I do not draw a lot.

[Stillwater]

HOLY CRAP! I can pay myself. Wish I knew that back in june when my snowmobile got repoed.:cry:

I am in Ma. as well cape cod did your sled really get repoded? did the business have cash at the time?

steve

[RICHIE K]

a % of our gross

[tjsquickcuts]

My Salary is $2500 monthly.....
Foreman makes $2200 Monthly.....
Other Four Guys make $2000.....Each Monthly.....
My business net gross is great....
My net is all for my business......Helps keep equity in my business. I am married, and my wife does well also....Her monthly salary is a lot higher then mine, so $2500 works out great for me and doesnt kill me when I file my taxes.....