****solo Operators****

Discussion in 'Lawn Mowing' started by Love2Mow, Feb 16, 2005.

  1. Love2Mow

    Love2Mow Banned
    Posts: 30

    This question is for companies that dont have employees at all.

    How do you guy pay yourself. Ive been going for 5 years now and pretty much take everything I make and put it in one account. I use the same account for my company and my personal use.

    Do any of you pay yourself a salary? Or hourly? If so what percentage do you use of your monthly gross and how often do you pay yourself?
     
  2. richmadmax

    richmadmax LawnSite Member
    Posts: 80

    I'm new to the this work. i'm doing it part time. I just know you have to keep two accounts. don't mix personal and business together. also find out how much expenses and put some aside for further stuff. The rest is your pay.
     
  3. Love2Mow

    Love2Mow Banned
    Posts: 30




    So your saying average out what you think you need every month for expenses and put that into a seperate account?
     
  4. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Posts: 2,128

    I am solo. I keep two accounts. One that all transactions run through, and one that I keep personal money in. I look at my earnings for the month, decide what I want to pay myself for the month and pay myself that amount. That amount goes to my personal account from my original account. The rest stays in the original and is used for expenses.
     
  5. richmadmax

    richmadmax LawnSite Member
    Posts: 80

    this is what one person said why you most keep business seperate from personal. Plus make sure you get insurance about one million. any question just ask, most people are great here. They were all new at one time, just some of them forgot what it was like....................................................................................................




    You are going to want to file for for S - Corp. The difference between filling as a corporation and a sole - proprietorship (or partnership) is in the taxation and business ownership.

    If you choose to be a sole proprietor then you personally are considered the financial entity of your business. This means that if your business is failing and the bill/tax collectors start a calling, they have a claim on all of your personal belongs, including your home. The good things about a sole proprietorship is the tax fillings are more simple, and you are only taxed on personal income.

    Becoming a corporation is a little more of a complicated filling, but it seperates you from your business entity. This means that if you get sued for millions of dollars becuase you ran little Jimmy over with a mower, then they cannot touch your house and personal belongings. The downside is facing taxation at both the corporate and personal level. Your money gets taxed twice. I would consider this the best life insurance you can ever have. S - Corp is a filling for a small business where they can get around the double taxation. As long as your business is small (under 75 employees) then you can use this filling.

    But like everyone else said. When you are in business you need your attorney on your right side and your accountant to on your left. Without these two your asking for trouble.
     
  6. ksland

    ksland LawnSite Senior Member
    Posts: 927

    I pay myself only what I need for my personal expenses.
     
  7. Southwest Lawns

    Southwest Lawns LawnSite Member
    Posts: 51

    My business is set up as an S-corp and my business cuts me a check monthly.
     
  8. nriddle77

    nriddle77 LawnSite Senior Member
    Posts: 269

    You need two accounts. One is personal, and one for the buisness. It makes record keeping so much easier. Keep track of all your reciepts and expenses, and bring them to your CPA. He'll know everything that is deductable.
     
  9. Carolina Cutter

    Carolina Cutter LawnSite Senior Member
    Posts: 987

    I am solo. I maintain a business account that is completely seperate from my personal account. I basically put myself on payroll. I pay myself based on the hours I worked for the week and the rest is business money, that way the business can support itself. I used to just take what I wanted but I always seemed to be starting over every year....LOL
     
  10. plateau lawn care

    plateau lawn care LawnSite Member
    from georgia
    Posts: 195

    just for your info just because your an s-corp doesn't me they can't sue you also someone can try to sue any comp. and anyone personally like a civil suit
     

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