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How do you pay yourself?

Discussion in 'Starting a Lawn Care Business' started by Coolclay84, Mar 3, 2014.

  1. Coolclay84

    Coolclay84 LawnSite Member
    Messages: 47

    I was just curious how everyone pays themselves & how much do you decide to pay themselves?

    Do you write youself a check from your biz acct to your personal acct bi-weekly, monthly, ect. And i'm hoping everyone keeps personal and business money completely separate.
    Posted via Mobile Device
  2. ohbuckhunter

    ohbuckhunter LawnSite Member
    Messages: 140

    I pay myself $1200 a month. That pays my bills that I have. My wife pays the rest of them since she's a nurse. Everything else stays in the business account
    Posted via Mobile Device
  3. AI Inc

    AI Inc LawnSite Fanatic
    Messages: 26,064

    I draw an $800 paycheck each week processed thru a payroll company. Then once a month I take a check for $1300 to pay my mortgage. I will also write myself a check once or twice a month for $500 or so.
  4. shane-pa

    shane-pa LawnSite Senior Member
    Messages: 338

    I budgeted myself for $1000/month. I am sole prop. so a simple transfer as an owners draw to my personal checking to pay my bills.
  5. Woody82986

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

    I have business and personal checking/savings accounts at the same bank and they show up on the same online banking login. Once a month I make a transfer from the business account to the personal account. It takes all of 30 seconds. The amount varies some based on time of year and what my personal needs are. Once in a blue moon I make two transfers in a month, but usually just one does the trick.
  6. gulfjoe

    gulfjoe LawnSite Bronze Member
    Messages: 1,638

    Do all the above posters pay taxes on your own paychecks? Do you do it per check or at the end of the year?
  7. AI Inc

    AI Inc LawnSite Fanatic
    Messages: 26,064

    I do mine per check with a lot more taken out to cover taxes of checks I write myself.
  8. TPendagast

    TPendagast LawnSite Fanatic
    Messages: 8,424

    I prefer to pay myself with a check, like a standard employee. A lot of jobs I bid on require things like an EIN and work's comp whether you have employees or not, so it does me little good to wave the 'no employees flag'

    I use seasonal help as needed.

    I have taken owners draws as needed.

    I also lay myself off in the winter.
    I might take a draw or two then, depending.
  9. gulfjoe

    gulfjoe LawnSite Bronze Member
    Messages: 1,638

    Do you have a payrool service or an accountant?
  10. TPendagast

    TPendagast LawnSite Fanatic
    Messages: 8,424

    pay taxes on checks just like a real employee with a W4/w2.

    draws I report at the EOY. on my taxes, taxes get figured....some years I owe, some years I get like an $80 refund. :laugh:

    business taxes done separately.

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