as an owner how much do you pay yourself

Discussion in 'Business Operations' started by smarino21, Dec 6, 2006.

  1. smarino21

    smarino21 LawnSite Senior Member
    Posts: 345

    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?
     
  2. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    % of Gross Revenue
     
  3. chipk1

    chipk1 LawnSite Senior Member
    from Florida
    Posts: 393

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

    bobw LawnSite Senior Member
    Posts: 807

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

    topsites LawnSite Fanatic
    Posts: 21,653

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

    Roughly speaking, the accountant always explains it better :laugh:
     
  6. Josh.S

    Josh.S LawnSite Bronze Member
    Posts: 1,085

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

    tthomass LawnSite Gold Member
    from N. VA
    Posts: 3,497

    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.
     
  8. Gatewayuser

    Gatewayuser LawnSite Bronze Member
    Posts: 1,734

    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.
     
  9. Husky05

    Husky05 LawnSite Senior Member
    Posts: 303

    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.
     
  10. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Posts: 2,116

    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
     

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