I frequently receive a common question: "How should you compensate yourself as a business owner?" The answer to this question depends on the unique structure of your business. During this episode, I will delve into the various payment options available to business owners, including those operating as sole proprietors, single-member LLCs, multi-member LLCs or partnerships, S-Corps, and C-Corps. I will share valuable insights into determining the optimal amount and frequency for your payments, emphasize the importance of meticulous financial record-keeping, and explain the tax ramifications associated with each payment arrangement.

 

Whether you find yourself at the helm of a sole proprietorship or the proprietor of a thriving corporation, grasping the intricacies of compensating yourself in alignment with your business structure is paramount to sustaining financial stability and achieving success. Tune in to this episode as I explain the specifics of each business structure and offer guidance on how to ensure fair and efficient payment to yourself.

 

What you'll hear in this episode:

[1:45] Exploring Payment Methods for Sole Proprietors and Single-Member LLCs.

[4:00] Deciphering the Ideal Amount and Frequency of Self-Payment.

[6:28] Navigating Compensation in Multi-Member LLCs and Partnerships.

[7:45] Unveiling Payment Strategies for S-Corporations.

[9:37] Strategies for Self-Compensation in C-Corporations.

 

If you like this episode, check out:

Will Artificial Intelligence Become Your Accountant?

The Cure for Ineffective Meetings with Mamie Kanfer Stewart

Building a Strong Company Culture with Caroline Pennington

 

Want to learn more so you can earn more?

CFO On Demand click here

Visit keepwhatyouearn.com to dive deeper on our episodes

Visit keepwhatyouearncfo.com to work with Shannon and her team

Watch this episode and more here: https://www.youtube.com/channel/UCMlIuZsrllp1Uc_MlhriLvQ

Connect with Shannon on IG: https://www.instagram.com/shannonkweinstein/

 

The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.