How do you pay yourself?

Discussion in 'Business Operations' started by RedSox4Life, Apr 26, 2009.

  1. RedSox4Life

    RedSox4Life LawnSite Bronze Member
    from Mass
    Posts: 1,426

    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.
     
  2. 93Chevy

    93Chevy LawnSite Fanatic
    Posts: 37,805

    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.
     
  3. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Posts: 7,596

    What are you trying to measure?
     
  4. topsites

    topsites LawnSite Fanatic
    Posts: 21,654

    I pay myself with money that my company earned.
     
  5. LouisianaLawnboy

    LouisianaLawnboy LawnSite Silver Member
    Posts: 2,199

    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.
     
  6. 93Chevy

    93Chevy LawnSite Fanatic
    Posts: 37,805

    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.
     
  7. fool32696

    fool32696 LawnSite Senior Member
    Posts: 991

    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.
     
  8. Hoots

    Hoots LawnSite Senior Member
    from DFW
    Posts: 327

    Very well.

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

    Fvstringpicker LawnSite Fanatic
    Posts: 7,596

    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.
     
    Last edited: Apr 27, 2009
  10. Big C

    Big C LawnSite Bronze Member
    Posts: 1,641

    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.
     

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