HOW MUCH SHOULD A BUSINESS OWNER PAY HIMSELF? IS IT A CERTAIN PERCENTAGE, OR A SET DOLLAR AMOUNT?

I have the tiny mechanism repair/webdesign commercial operation in Oklahoma. I additionally conduct during the pizza place, go to propagandize as well as am the proffer firefighter. I dont know how most of my commercial operation supports to compensate myself in sequence to keep all paid for, as well as still assistance the commercial operation grow.

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Michael F July 22, 2010 at 4:42 pm

Pay yourself an hourly, collect a paycheck from one business, and one from the other.

At the end of the year – you take a nice bonus from your end year profits.

I receive a salary as CEO and President of my company, plus receive quarterly dividends from my stock ownership in the holding company and various holdings in the subsidiary companies.

John A July 22, 2010 at 4:49 pm

You don’t pay yourself anything until you calculate your net income. That’s your profit after all expenses. After you are sure you have a profit, you can dip into that for your needs, but don’t deplete it. Many business go belly up because the owner thinks because he worked hard he deserves a paycheck. You do not deserve a paycheck unless you have profit in hand. You don’t give yourself a paycheck based on income which is on the books, only income that is already in the bank. If you follow that rule your business will survive.

Alfred S. December 5, 2010 at 6:38 pm

I would like to start a laundromat business but one thing is if I do this I want to do it whole hardly and I want to give my self a salary but how much and still have money in the bank.

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