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Discussion in 'Business Operations' started by FineEdgeLawnsMD, Mar 27, 2014.
Every other week self checks saves on the cost of checks. Checks cost money.
Wow. Great response and a lot of help so far, appreciate it from everyone. Owners draw sounds about right every other week or so. Should I pay myself more or the business more since I'll be taxed on both? Thanks
Doesn't matter when you're solo
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1% chance you get audited. Not saying you should do anything illegal, but I got an accountant that is pretty aggressive with deductions and knows how to make sure the government doesn't get a penny more from me than they should.
This makes sense because your paying the tax on the Net profit to the business. Then you take your owners draw (which is the owner removing profit from the business account over to a personal account.
I don't think you get "double taxed" on it if Im understanding this correctly.
For me, lawn care is an additional income, and my tax return is based on my primary income, plus the net profits from the business for that tax year. The owners draws aren't taxed twice, because its taxed as part of the net profit of the business. Im no accountant, so I may not be explaining that very well. Hell...I may even be flat out wrong....LOL...but as I sit here and think about it, it seems like that's how it should be anyways. If we could all write ourselves a paycheck IN ADDITION to the owners draw, we would pay ourselves ungodly hourly rates, and then show a LOSS for the year on the business.....hmmm........ more questions for the accountant on how this is supposed to be set up.
I gotta find me someone like that. Do you pay a percentage on your tax return yearly to them or how does compensation work? Thanks
They just charge me an hourly rate. I believe I paid around $125 last year. This year, I had more deductions and made more so it probably will be a little higher. Definitely worth it.
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I wish he was shady in a good way, but he wasn't. When I was doing my homework on them this guy was pretty shady, so I hired him. He turned out to be shady for the wrong reason.
NO organization, he was always forgetting what he qutoed me, rates were changing, and he was trying to over charge me a few times. I finally put my foot down when tax time came. He claimed I owed money, which I knew wasn't right. So I did them myself using turbotax, and they ended up owing me money. I HIGHLY doubt he checked over his work...considering he had a lot of spelling errors.
Even better if they are not nosy and don't ask many questions.