015 - Getting Paid: How To Pay Yourself (Part Two)

The 2 Cents Business Podcast

Still 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?

Last week, we discussed deciding what you should pay yourself as a solopreneur (DBA, single member LLC treated as a sole proprietor, etc)... but what do you do when you’re a S-Corporation, C-Corporation, etc?

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 the owner of a corporation (S-Corporation, C-Corporation or Partnerships). There is a separate episode for a solopreneurs (DBAs/doing business as; sole proprietors or a single-member LLCs treated as a sole proprietor).

Mentioned in this episode:

• the question you should ask yourself before you start transferring money from your business
  
• what you need to have in place (like a board of directors)
  
• what you may want/need to get in writing
  
• how to figure out a reasonable salary
  

Highlights of this episode:

• 00:57 Part Two of Question: “How do I pay myself as a self-employed business owner?”
  
• 01:35 The Caveat: How you pay yourself depends on the legal structure of your business (see Episode 014)
  
• 02:33 How to pay yourself as a multi-member LLC, partnership, S Corporation, C Corporation, etc), legal structures that are separate or treated as separate entities
  
• 03:46 What tax documents do you get as the owner of these types of businesses (K1s and W2s)
  
• 04:55 How to pay yourself as an SCorp and how to define a “reasonable salary”
  
• 05:48 How to pay yourself as a multi-owner corporation or a partnership
  
• 08:14 Quick recap and some things to consider when paying 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

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