What should you pay yourself?

[Lawn-Scapes]

Is there a certain percentage that any business owner should pay themselves no matter the size of the company?

[Az Gardener]

Tht depends on what hats the owner is wearing. If the owner is also the foreman he would make a reasonable foremans wage then hopefully there is something left for profit. Which you could choose to take but if you want to grow thats where the profits wil go.

I don't think you will find an industry avg if there is you could check with PLANET they do a yearly thing and gather that kind of info but I question how accurate it is because I don't think many participate.

You can take all the profit and stay the same size or you can take what you need to live and reinvest. Most guys I know that are owners no matter what the size 500-K to 10 million per year volume take a salery of 100-150-K per year between them and the wives and reinvest the rest for growth.

[AI Inc]

Im an s corp. I take $800 a week and draw the rest a profit. Taking too much in a paycheck kills you with comp, taking too little isnt good come tax time.

[lawnman_scott]

It depends if you take it for tax reasons, or to give yourself the impression that the company makes more than it does. I dont take a salary.

[DanaMac]

Im an s corp. I take $800 a week and draw the rest a profit. Taking too much in a paycheck kills you with comp, taking too little isnt good come tax time.

AI - you and I keep finding too many similarities with our biz. Yes, I'm and S-corp as well, pay myself a little less than the 800 a week, and write myself dividend checks when needed.

To the OP, no real percentage, but try to reinvest as you go instead of just dumping it all in your pocket. I learned that a little late. Equipment, land, shop/garage, whatever. Even invest it in good people to work for you.

[Two Seasons]

S-Corp here too.

Pay myself as little as possible as we have some power equipment debt that we are getting behind us. My wife, and co-owner, draws no salary yet.

[Brianslawn]

i only make min wage so i also draw welfare and get food stamps. haha!

[Stillwater]

Whats a paycheck?//

[TLClandscaping]

I take 30% right off the top for taxes, seems high but you want to be over and not under and placed in a sub-account or your business savings account, works for me.

Payday falls on when the job is done, im a SP soon LLC

[Lawnworks]

I am s-corp... I only pay myself 25k a year... the rest is business profit. Isn't that the whole point of being an s-corp... avoid ss?

[Lawnworks]

AI - you and I keep finding too many similarities with our biz. Yes, I'm and S-corp as well, pay myself a little less than the 800 a week, and write myself dividend checks when needed.

To the OP, no real percentage, but try to reinvest as you go instead of just dumping it all in your pocket. I learned that a little late. Equipment, land, shop/garage, whatever. Even invest it in good people to work for you.

It is kind of a catch 22. To really build your wealth, you almost have to pay taxes. Although investing in the business is probably the best way to invest our money... but buying shiny toys is just pissing it away. Even on land or shop purchases, it really doesn't help out w/ taxes tremendously. It is not like you can write it all off. I think the depreciation of a commercial property is 28 years... not a big help.

[Brianslawn]

It is kind of a catch 22. To really build your wealth, you almost have to pay taxes. Although investing in the business is probably the best way to invest our money... but buying shiny toys is just pissing it away. Even on land or shop purchases, it really doesn't help out w/ taxes tremendously. It is not like you can write it all off. I think the depreciation of a commercial property is 28 years... not a big help.



what? lawn boys report taxes now?

[Lawnworks]

what? lawn boys report taxes now?

lol... not many of us apparently.