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RedSox4Life
04-26-2009, 06:43 PM
This question is aimed more at the smaller operations, solo operators or guys with one or two employee's.
Like in the title, how do you pay yourself?

Do you collect a flat weekly salary?

Or pay yourself by the hour?

Or are you from the "Whatever's left after paying the bills is mine?" school?

Other? Elaborate if you would.

93Chevy
04-26-2009, 06:49 PM
Well, for me, I run solo part time. All money that my company makes, stays in the company. I pay myself with my full time job's income.

I do reimburse myself for out of pocket business expenses, i.e., I don't have a company credit card, so I'll pay with my personal debit card, then write a check to myself from the company.

Hope that answered your question.

Fvstringpicker
04-26-2009, 09:44 PM
What are you trying to measure?

topsites
04-26-2009, 11:54 PM
I pay myself with money that my company earned.

LouisianaLawnboy
04-27-2009, 12:37 AM
Well, for me, I run solo part time. All money that my company makes, stays in the company. I pay myself with my full time job's income.

I do reimburse myself for out of pocket business expenses, i.e., I don't have a company credit card, so I'll pay with my personal debit card, then write a check to myself from the company.

Hope that answered your question.

DANGEROUS! If you pay company expenses with personal credit cards and personal expense with company money if something happens you are responsible financially for ANY mistakes of your company.

93Chevy
04-27-2009, 09:45 AM
DANGEROUS! If you pay company expenses with personal credit cards and personal expense with company money if something happens you are responsible financially for ANY mistakes of your company.

I think what I meant might have come out wrong. I don't write off personal expenses with company money. That's a big no no, especially for LLC. I don't even pay for fuel with company money.

fool32696
04-27-2009, 10:04 AM
I draw a fixed salary 52 wks a year working or not. The salary is as high as possible while at the same time leaving the company with enough cash to pay the bills and to pay for future large expenditures. It took me almost six months after I started the company to start drawing a salary. If your company is small you may have to wait to get paid.

Hoots
04-27-2009, 10:10 AM
Like in the title, how do you pay yourself?

.

Very well.

Seriously, I pull what I need to pay my personal bills and leave the rest for working capital.

Fvstringpicker
04-27-2009, 11:53 AM
Unless an LLC chooses to be taxed as a corporation, its taxed as a partnership or a sole proprietorship as the case may be. Either way, you can pay yourself a standard salary and a monthly/quarterly/yearly bonus based on your judgment.

Big C
04-27-2009, 02:26 PM
I am solo/parttime..This is my 2nd season in business. I am just getting to the point that I can afford to pay myself. I pay myself a flat monthly salary and will increase my salary as business increases. I have my business acct setup to auto draft me a check once a month. If I have an above average month I will give myself a bonus based on a set percentage.

LB1234
04-28-2009, 12:32 AM
I think what I meant might have come out wrong. I don't write off personal expenses with company money. That's a big no no, especially for LLC. I don't even pay for fuel with company money.

listen to what lawnboy has said, he is just trying to help save you some trouble IF it ever came to it.

It sounds as if you are using your personal debit card to pay for business expenses. Keep your business stuff seperate from your personal stuff. Never mix the two. If your using personal money to help the business out or help with cash flow...right out a simple loan or IOU that the business needs to pay you back. Something to prove that your business is a seperate entity.

93Chevy
04-28-2009, 12:10 PM
listen to what lawnboy has said, he is just trying to help save you some trouble IF it ever came to it.

It sounds as if you are using your personal debit card to pay for business expenses. Keep your business stuff seperate from your personal stuff. Never mix the two. If your using personal money to help the business out or help with cash flow...right out a simple loan or IOU that the business needs to pay you back. Something to prove that your business is a seperate entity.

Sorry if it is seemed like I was shooting anybody down, that wasn't my intention. I appreciate the help and advice.

I'm not often good at articulating what I'm saying, so bear with me. I don't have a company credit card. So far I've made 2 online purchases that have required credit cards...one for Quickbooks from Amazon, and the other a pack of Trenchblades. These are standard tax-deductible business expenses, as my attorney had me understand. In which case, I paid for each purchase separate with my personal credit card. I immediately wrote myself a check from the business for the exact amount of each separate purchase, with proper notations. As my attorney had me understand, that is perfectly acceptable, because that's not piercing the corporate veil. I don't buy stuff for myself with business checks and I don't put money or assets into the business without annotation (i.e. capital investments).

dmunoz
04-28-2009, 07:35 PM
Get paid a regular salary. I'm cutting costs and employees, and raising prices so that I can get paid regularly. Seems like I'm the last one to be paid. That's not why I started my own business!

Lawnworks
04-29-2009, 12:37 AM
I think it has to do with how your company is set-up. You need to consult with an accountant. The name of the game is avoiding taxes. Everybody here probably has somewhat of different company structure. You need advice pertaining to your income and structure... we cannot determine that with the information provided. Getting a good accountant is possibly the best money I have ever spent.

dmunoz
04-29-2009, 12:57 AM
I think it has to do with how your company is set-up. You need to consult with an accountant. The name of the game is avoiding taxes. Everybody here probably has somewhat of different company structure. You need advice pertaining to your income and structure... we cannot determine that with the information provided. Getting a good accountant is possibly the best money I have ever spent.

I agree. I am meeting with a new accountant to get assistance. My current one has not provided much feedback and it's definitely hurt my company and me. I get caught up in the sales and day-to-day operations and often don't always catch financial problems quickly.

ontheouter
06-14-2009, 12:03 AM
I pay myself a flat salary each week, it provides consistency, safety and security for myself and my family, regardless of whether I'm in the busy or slow seasons.

I know that my expenses really don't change much from year to year, and the income/expenses ratio gives me a base indication of what my salary should be after allowing for 5% higher than what is expected for expenses.

That way I'm covered if expenses rise.

And if income rises or expenses fall at the end of the financial year, I get a financial win which I use to buy new equipment, pay myself a bonus and accrue in business savings. Last year I gave myself a bonus of $5,000, as well as building business capital.