Paying myself

Discussion in 'Business Operations' started by LAWNSTAR1306, Jul 7, 2004.

  1. LAWNSTAR1306

    LAWNSTAR1306 LawnSite Member
    Messages: 16

    I'm finally making enough money... Can anybody give information about paying myself, I am a sole-prop. any information is helpful
  2. amw

    amw LawnSite Senior Member
    Messages: 410

    if your a DBA i think..
    you basicly are welcome to any and all money you make...
    as YOU are your company...
    but you should check with your tax advisor...or accountent
    (DBA = doing biz. as....your company name here)
  3. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Messages: 4,040

    Hi LAWNSTAR1306,

    Here are a couple of sites that may be helpful.

    The Rules of Paying Yourself a Bonus, Part 1

    The following quote is from this site.

    "Before you can decide how much money you can safely pull out of the business, you need to first figure out how much money your small business needs.

    How much are your inventory, labor, marketing, and other expenses every month? If you can't, off the top of your head, say what your overhead is every month, now is the time to figure it out. It's time to make a budget.

    I know, I know, the thought of making a budget sends chills down your spine. But I am also the bearer of good news. A business budget is no big deal, or need not be. It is nothing more than figuring out how much money your business usually makes, where you spend that money, where you should spend that money, and thus how to best allocate your resources. That's it.

    Once you know how much comes in and goes out, you can begin to figure out how much you can realistically afford to pay yourself.

    How much is that, you ask? Only you can say for sure after seeing your budget, but as you begin to formulate that number, keep the following three things in mind:"
  4. twins_lawn_care

    twins_lawn_care LawnSite Senior Member
    Messages: 932

    I am also DBA, and basically any PROFIT your company shows is your taxable income. So your gross for the year, minus any expenses, will leave you with your income, of which is applied to your (if any other) income and is added to your taxable income.

    With this being only my second year, I am still learning, so please if anyone can offer advice otherwise, please do.

    make sure to keep good records and receipts of all of your expenses to make tax time a whole lot easier. I have kept every receipt this year, and it helps a lot in estimating how much it costs to run the business as well as keeping accurate tax records.
    Hope this helps.

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