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How much to pay yourself

rclawn

LawnSite Bronze Member
Location
Kansas City
Well sir, if you are actually renting them the equipment that would technically be permissible for 1099. I’m still not fully on board with your accounting practices, but it does sound like you have at least done your homework on the rest of the legalities of your business management. So, I’m not going to give you a hard time
 

jetson

LawnSite Senior Member
Well sir, if you are actually renting them the equipment that would technically be permissible for 1099. I’m still not fully on board with your accounting practices, but it does sound like you have at least done your homework on the rest of the legalities of your business management. So, I’m not going to give you a hard time
Thank you! I try to keep it all legal.
 

snomaha

LawnSite Bronze Member
Location
midwest
Hello everyone,

Im looking to get a bit more organized with my business operations and need some advice. And since forming an LLC recently, I understand it’s important to pay myself wages. I’m just curious as to what you guys pay yourself and/or how did you come up with a specific figure and why. Thanks in advance!
What would be a fair market wage for what you do in your business - $15 - $20 - $30 per hour? If you can't afford to pay a market based wage, then your operating at a loss and that can’t last long.

See too many on this forum underpay themselves in wages only to brag about how high net income is - value profitability over tax saving strategies and your non distorted financials will be healthier.
 

Chineau

LawnSite Member
Location
Manitoba, Canada
bookkeeper and an accountant. this will help you get it straight and keep it that way, tax people are watching and you do not want them to get a finger in a uncomfortable place!
me I just need enough for beer, bait and bullets and if you shoot straight you don't need a lot of bullets.
 

knoxJRM

LawnSite Member
Location
Knoxville
I think this can be a very beneficial thread with input from some of the larger lco owners about where they were at certain times of growth and what worked or didn’t work. My pay has fluctuated yearly with where my business growth was. As the owner, some years of heavy growth required heavy equipment purchases and more maintenance to trucks and equipment. Causing my end of year bonus to be drastically different. What I have figured out works best for me is a $25/hr rate with time and a half overtime with a minimum pay of 40 hours. Field work only. I am the accounts receivable, payable, job estimator, bookkeeper, etc. for my business but do not track that time worked. Currently working with accountant on raising rates and percentages to include a position for these tasks.
 
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