How do you pay your self

Discussion in 'Lawn Mowing' started by TBLC, Jan 24, 2005.

  1. TBLC

    TBLC LawnSite Member
    Posts: 32

    Hey guys. How do you pay yourselves? Hourly or are you on salary, is it some kind of a percentage? And do you get paid weekly, biweekly, monthly?? also, how much do you pay yourselves?? Right now I am on a biweekly pay check at ten dollars and hour. The biz isn't making millions, but it's doing OK. Am i screwing myself over or what? :angry: Great site. Thanks for the feedback
  2. Evan528

    Evan528 LawnSite Silver Member
    Posts: 2,144

    Because I am a sole Proprietor I take an owner draw out of the business account once a month. I pretty much just figure out how much my personal bills are each month and then add spending money...thats how I come up with that months "owner draw". A couple of times each year I write myself an extra check for a lump some of money and also a big check to hold me over the winter. The nice thing about being a sole prop is that I can pretty much just take money as needed.

    Should I feel like making a nice size personal purchase throughout the year I just take an extra owner draw. Just have to make sure to leave enough Money in the business account during the winter to get started again in the spring before money starts rolling in again.
  3. grassyfras

    grassyfras LawnSite Bronze Member
    Posts: 1,473

    I just take whatever I want. Im set up as a sole-propriator. I make sure my IRAs are maxed out and all my bills are paid and I have enough to last maybe a month or so with emergency money to run the business. The rest goes to me. I was thinking of just paying myself a few hundred each week but then I decided thats really more complicated. It seems inless your incorporated to just pay yourself whats over each month inless you spend everything you make. If thats the case you need to get that fixed. Happy mowing
  4. grassyfras

    grassyfras LawnSite Bronze Member
    Posts: 1,473

    Evan you psted right before. He sumed up how I pretty much do it with the big personel purchasses
  5. YardPro

    YardPro LawnSite Gold Member
    Posts: 3,563

    we all get paid every two weeks just like our employees.
    I am salary, but it is based on $30.00/hr
  6. Tvov

    Tvov LawnSite Bronze Member
    from CT
    Posts: 1,157

    Just keep track of your income, and you should be making the quarterly estimated income tax payments to the IRS. You don't want to be whacked with a big tax bill in the winter, so make sure the quarterly payments are moderately accurate.
  7. shaughnessylawn

    shaughnessylawn LawnSite Member
    Posts: 117

    hey yard pro?do you give yourself any bonus's
  8. Turfdude

    Turfdude LawnSite Bronze Member
    Posts: 1,900

    I cut myself a paycheck from the corp. as yardpro. If I have a vg year w/ extra dough, then maybe I get a bonus too. No matter how well we do, noone compares to Hot Rod. The man's matre$$ is packed w/ Franklins. Right Rod.

    BOTURF LawnSite Senior Member
    Posts: 316

    MY BUSINESS writes me a ck every 2 weeks as iam a employee of my small corp and then if we need more i take a owners /' stock holder draw i take out no more than i need
  10. DennisF

    DennisF LawnSite Bronze Member
    from Florida
    Posts: 1,381

    I don't take a paycheck. I'm a sole proprietor operation without any employees. During the month I pay the expenses of the business and transfer any surplus into other accounts (savings, IRA's, etc.) at the end of the month. It's best if you have an account set up for the business that is separate from your personal accounts. This way you're not paying personal expenses from the business account which makes it hard to sort things out at tax time.

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