The 2 Cents Business Podcast

014 - Getting Paid: How To Pay Yourself (Part One)

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Not sure how to pay yourself from your business?  Or what to pay yourself?  Or how much you should put to the side to pay income taxes?

There are a lot of percentages and formulas floating all around but is it right for you and your business?  How can you be sure?

Deciding what you should pay yourself as a business owner can be a confusing matter to resolve but I’ve got you covered.

Note:  This episode is especially for you if you're a solopreneur (DBA/doing business as; sole proprietor or a single-member LLC treated as a sole proprietor). There's a separate episode for business owners of corporations.

Mentioned in this episode:

  • the question you should ask yourself BEFORE you start transferring money from your business
  • the quick calculation you can use to figure how much to pay yourself
  • The Pay Yourself Calculator (part of the Money Metrics Tracker Bundle)

    • Highlights of this episode:

    • 00:38  Question:  “How do I pay myself as a self-employed business owner?”
    • 01:49  Why paying yourself depends on your legal & tax business structure
    • 02:35  How to pay yourself if you are a sole proprietor, a DBA/doing business as or a single member LLC (treated as a sole proprietorship)
    • 02:52  How to pay yourself if you’re anything else (multi-members LLC, partnership, S Corporation, C Corporation, etc), legal structures that are separate or treated as separate entities (continued in Episode 015)
    • 04:05  More on how to pay yourself as a solopreneur (1040-Schedule C businesses)
    • 05:07  What are the recommended distribution percentages
    • 06:59  Why I recommend that you pay yourself from the very beginning
    • 08:24  How often do you pay yourself

      • RESOURCES

      Kill The Vanity Metrics Challenge

      Money Matters Checklist

      Resources List

      WORK WITH COMMON CENTS

      Virtual Accounting, Bookkeeping & CFO Services

      Courses & Programs

      Templates

      Planners & Printables

      Thanks for listening.  Don’t miss an episode - subscribe on:  Anchor, iTunes, Spotify, Stitcher

      Want to chat and hangout with me, Joyce?  You can find me on Facebook, Instagram or Twitter…as @thecommoncents.

      You can find all the links and additional show notes at:  https://www.thecommoncents.com/podcast

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      The 2 Cents Business PodcastBy Joyce M Washington, CPA
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