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Do You Give Yourself A Paycheck?

Discussion in 'Business Operations' started by Right Touch, Nov 29, 2008.

  1. Right Touch

    Right Touch LawnSite Senior Member
    Messages: 382

    Just curious to see how owners are paying themselves- do you give yourself a paycheck when you run payroll for employees? Are there times when you cant even pay yourself while everyone around you is getting paid? Do you personally own equipment and lease it to the company? Are there other ways to get paid? What about paying personal bills through the business account? I have a few customers who pay their maintenance bill from their own business accout. Doesnt the state catch that? Or are there ways around it?Or are you the guy who is doing it on the side for cash, not claiming anything, and ruining it for the rest of us? I know theres like 10 questions here, but it is all kinda related to the same topic.
  2. capnsac

    capnsac LawnSite Senior Member
    Messages: 702

    Ok so lets try and dissect this a bit...

    Do I give myself a paycheck? Yes, every two weeks, same amount every time. I take state and fed taxes out and put into savings account.

    Are there times I can't pay myself? No, never, your not doing something right if you can't afford to pay yourself. Without your well-being your company cannot go on, kapeesh?

    Do I personally own my equipment and lease it to the company? No, I buy my equipment with my business account.

    Are there other ways to get paid? Not sure on this one, I always use the two week method.

    What about paying personal bills through the buiness account? Depends on if you have a viable reason to pay those bills with your business account. If you bought something that can be used for the business with your personal account and you have the receipt for that transaction, than by all means pay it off with the business account. There is a bunch of gray area on this one.

    Paying maintenance bills with the business account? Yes, I pay for my garage (i.e. utilities) with my business account. I am using my house to run my business out of, therefore it's a tool for my business and by default a valid business write-off. It has to be an approximation amount though about how much you would spend at a regular garage.

    Paying cash? Hell no, will never do that ever, period. Why would you give someone money out of your personal bank account that you had to pay taxes on so that they don't have to pay taxes on it? Stupidest run-around bs I have ever heard in my life, and when those jokers get caught I smile.
  3. bdm408

    bdm408 LawnSite Member
    Messages: 19

    Please excuse my ignorance, but could you put the last part of "paying cash?" in lamer terms. are you referring to paying your employees cash? who are you referring to when you say jokers get caught? THANX
  4. DanaMac

    DanaMac LawnSite Fanatic
    Messages: 13,187

    Pay myself a monthly salary check. Pay myself dividends above that when ever necessary. Buy all equipment through company which is a corporation. Pay employees regular paychecks with taxes withheld. Pay for unemployment, workers' comp., and general liability insurance.

    Isn't this what a business is supposed to do? :dizzy:

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