How To Pay Yourself As A Small Business Owner

As a small business owner, it is important to know how to pay yourself. After all, you are the one running the show! This blog post will give you some helpful tips on how to ensure that you are paying yourself fairly and correctly as the owner of a small business.

As the owner of a small business, you have a lot of responsibilities. One of the most important responsibilities that you have is ensuring that you are getting paid appropriately for all of your hard work. Here are a few tips on how to do just that:

Know Your Worth As An Owner

It is important to know how much your time and expertise are worth. This will help you to determine how much you should be paid for running your small business. Do some research on comparable salaries for small business owners and use that information to help set your salary. You can also consider the revenue that your business is bringing in and use that to help inform your decision about how much you should be paid.

See our full video breakdown on how to pay yourself as a small business owner:

Set Up A Regular Payment Schedule

Once you have determined how much you should be paid, it is important to set up a regular payment schedule. This will ensure that you are receiving your salary on a consistent basis and will help to keep your finances in order. You can choose to pay yourself weekly, bi-weekly, or monthly, depending on what makes the most sense for your business and your personal financial situation.

Make Sure You Plan For Taxes

When setting up your regular pay schedule, be sure to factor in taxes. You will need to set aside money from each paycheck in order to properly pay your taxes at the end of the year. This includes both federal and state taxes, as well as any self-employment taxes that may be due. Consulting with an accountant can be helpful in ensuring that you are correctly calculating and setting aside money for taxes.

Plan for The Long-Game (Retirement Savings)

Just because you are self-employed does not mean that you cannot save for retirement! It is quite easy to do if you make use of an Individual Retirement Account (IRA). There are several different types of IRAs available, so be sure to do some research to find the one that best suits your needs. Then, simply start contributing money to your IRA regularly and watch it grow over time!

Curious to know how much your business can profitably afford to pay you?

Use our Predictable Paycheck Predictor Calculator here

Now that you know how to pay yourself as a small business owner, put these tips into practice! Doing so will help ensure that you are fairly and correctly compensated for all of your hard work.