Owners Draw

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.