Paying yourself

Discussion in 'Lawn Mowing' started by meets1, Jul 18, 2004.

  1. meets1

    meets1 LawnSite Gold Member
    Messages: 3,858

    I have read the threads - "what is good money" 'amount cleared / day / month / year" my question is how do you guys pay yourselves?

    Say your taking in "clear" $2k a week. Is that your money that yu pay yourself or are you using a software system that pays you $350 a week which takes into account your taxes, FICA, Etc and then what do you do with the remaining money that is left? invest some, rainy day acct, IRA account, tution acct?

    HOOLIE LawnSite Gold Member
    Messages: 3,981

    Depends on the legal structure of your business. If you are a sole proprietor, than everything you make is yours after you pay your expenses, taxes, etc.

    The best thing would be to talk to an accountant, they can give you all the advice you need to make sure you are doing everything properly.
  3. lasher66

    lasher66 LawnSite Senior Member
    Messages: 399

    I pay myself about a quarter of what I make a week and put everything else in my business account for taxes, winter savings , expenses. I got my system down to where I can pay myself the same amount all year round and if anything is left over after tax time you can do what you choose to do with it. (spend it , or invest in business)

  4. BCSteel

    BCSteel LawnSite Senior Member
    Messages: 876

    $1000/month to myself, thats it. The rest goes back into the business.

    PMLAWN LawnSite Gold Member
    Messages: 3,534

    I pay myself for each hour that I work in the field. I do not get paid for office work yet. I plan to start that next year. I also do not take any from the business as of yet. The business plan has the dividends starting in 06. My hourly pay (at this time ) is given back to me from shareholder loans that I made to start. That account will pay out this year and than I will start to take normal employee pay.
  6. ihatestumps

    ihatestumps LawnSite Member
    from ct
    Messages: 10

    I pay myself $25 an hour for field work, paperwork is on my own time. I was just mixing all the money together when I first started. What a mess. I think a lot of people get confused about what profit really is. First I pay myself, then after everything is said and done if by chance there is a little bit left, my wife takes it.
  7. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Messages: 4,373

    I wait until the end of the year, whatever is left over is mine. It isn't too much, mostly because I keep buying equipment to increase the equity of my business.

    PMLAWN LawnSite Gold Member
    Messages: 3,534

    ihatestumps--RULE # 1 don't let wife see books.

    J/K My wife is an accountant so I lose that one all the time. She does the books.

    Me (equipment junkie) "Can I buy 5 different color Z's-one for each day of the week.That would be cool"

    Her" Get on you hands and knees and cut with a hand trimmer, that would be the cheapest way to go"

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