How to pay yourself as a business owner

How to pay yourself as a business owner

Most of us start a business so that we can have additional income or so the business can pay us. Rather that is full-time or part time. I hope that your goal is to make money. If not, why are you in business? You are in business to not only share your gifts and talents but to also get paid for them.

So, the most common business entity to start is usually an LLC. Many people start as an LLC because it is one of the simplest entities to run that provide asset protection to owners.

What many people don’t know, is that members of an LLC cannot pay themselves a salary or expense out their time spent in running or building the business.

Why you should switch to S Corp

Why you should switch to S Corp

When starting a business, there are two ways you can become official. You can incorporate as a corporation or you can form an LLC. Many people usually go with the LLC . Sometimes because they haven’t mapped out their business goals, sometimes because LLC is easier to maintain, they just want to get started and be official or someone simply told them to get an LLC.

There are different entity structures you can pick based off the way you choose to run your business. However, an LLC is the most common business structure. What many have found is, once they start making a nice profit in their business, the taxes owed become rather much.

4 different taxes you need to know

4 different taxes you need to know

When you start a business there are 4 different taxes you should be aware of. Unpaid taxes are a major reason businesses fail. Understand , that the money you collect is taxed, so a portion of that money goes to the government. That is why it is beneficial to have a bookkeeper. We will keep track of how much you owe and when you owe it based on the transactions made in your business.