Money Question

Discussion in 'Business Operations' started by mrbenfer, Jul 27, 2003.

  1. mrbenfer

    mrbenfer LawnSite Member
    from Iowa
    Posts: 136

    I am interested to know how the business owners pay themselves? I bring in money at the end of the month and put it into the business. I dont really know the correct way to pay myself.

    Do I take a % of my total earnings after I pay my overhead?
    Do i pay myself a salory?

    I'm new to running a business and would like in-site on how you take care of your money.


    P&P LawnCare*LandScape
  2. I set myself a draw of $X per month. Transfered from business account to personal account.
  3. GLAN

    GLAN Banned
    Posts: 1,647

    Your a single operator correct?

    What you make at the end of a week, month, year after expenses is yours.

    Investing back into the company, your investing in yourself and your future.

    As a sole proprietor. Any profit at the end is your income.

    Incorporated. Then you would provide your self an income salary, based on a set salary or hourly wage. Taking a salary allows you the employee benefits from your business. Workers Comp. Disability. Unemployment................
  4. Dr. Mow

    Dr. Mow LawnSite Member
    Posts: 109

    for the first year to year and a half I was a part timer, but i did start out with 61 ztr and 36 wb, every dime I made went directly back into the business. Been in business for 5 years now, and when I do payrol on fridays for my crew, my check is the first one I write.:D :D Always pay yourself first...;) ;) ;)
  5. KenH

    KenH LawnSite Bronze Member
    from CT
    Posts: 1,622

    Unless you are an officer.......:rolleyes: :mad:
  6. Grassmechanic

    Grassmechanic LawnSite Silver Member
    Posts: 2,697

    I allow myself a salary duing the season that is just enough to get by on. Then, at the end of the year, after all bills are paid and all expenses are met for startup in the spring, I allow myself a hefty bonus.
  7. mrbenfer

    mrbenfer LawnSite Member
    from Iowa
    Posts: 136

    Hey.. Thanks for all the input.

    P&P LawnCare*LandScape
  8. Gene $immons

    Gene $immons LawnSite Bronze Member
    Posts: 1,028

    I rarely pay myself, however all of my bills, mortgage etc are paid by a company check. 1 account.

    I generally like to carry around $100.00 in my wallet, so I go to the bank and cash a check for that amount when I need cash.

    Works well for me.
  9. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I would personally try to split your personal and business expense apart from each other. But at the end of the year for a solo operator you still have to pay in 15% of your net income.
  10. glenjr10

    glenjr10 LawnSite Member
    Posts: 98

    I don't know what school of business you came from, but I learned that the owner is the last one to get paid, especially for a new company.

    Pay employees, and then the rest is for yourself.

    Just my .02

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