Paying Myself as the Owner - Belk on Business - Episode 104
1. What is the entity structure? Single member LLC/sole proprietor…cannot have payroll, only draws. Set aside 25-30% minimum for taxes. Guaranteed payments for multi-member LLC owners or partners of partnership, not payroll. LLCs taxed as S-Corp or S-Corp…owner should be on payroll, distributions as approved and documented by owners
2. What do other businesses in my industry and market pay for the position? What would it cost to replace me in the business?
3. What do I need to support my lifestyle? Am I taking draws beyond my payroll on a regular basis to support my lifestyle or am I paying personal expenses with business funds?
4. Does the IRS care?
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