Thanks. This makes sense. A quarterly draw sounds like a good approach. That allows you to take stock of where you are at, how you've done, and whether you've reached the point where it's wise to pull anything out yet.
This video is gold! Thank you so much for taking the time to record such a thorough, detailed video laying all of this out. So glad I took the time to watch this. Highly recommend!!
So paying yourself is fairly straightforward when you think about it. The hard part for me is knowing how to fund yourself. If I use my personally owned equipment to conduct business is providing this equipment "funding"? If I'm a photographer, have my own camera that I use in the business, can I also use it for personal activities without "piercing the veil?". If I buy a new lens is that a business expense or a gift to myself? ..and so on.
Great information and well orginized. I liked the summary at the end. Also, I love Profit First! It's such an easy concept! And, I take Owner's Draws with may LLC photography business.
Thanks for your comment! PROFIT FIRST IS AMAZING! Every small business owner should read it to ensure they are keeping track of their finances correctly to ensure a profitable business (and not just break even!). Most single-member LLCs do only take an owner's draw, so you're doing it the right way!
I have a question , since we have to pay ourselves I wanted to know if we can reinvest the money back into the business and what is the right way of doing that
Is the 15% self employment tax in addition to the 25-30% that should be put into a tax savings, or does the 25-30% cover that 15% self employment estimate?
Thank you for your video! I just transfer to pay myself but the account I use is not technically a business bank account... Just a separate account only used for biz! Do you have recommendations for what bank to use?
If you're an LLC, you'll want to ensure that is a legit business bank account that's attached to your LLC registration number and EIN. If you're a sole proprietor, then its okay if its just a separate checking account. For business bank accounts, I actually just recorded a new RUclips video yesterday on this subject and it'll go live next week-you read my mind! But, in the meantime, I suggest the following: the bank you currently already have your personal checking with, your local credit union or state bank, OR a nationwide bank such as Chase, US Bank, Wells Fargo, etc (these banks often have good incentives for opening a biz bank account and putting in and maintaining a certain amount in there for a few months!).
Wait if I pay myself 50% of my gross income. What about my business expenses and my employee. I may not make enough to pay myself that much. It seems like it would make sense to pay 50% of my net income. I feel like a dummy with this stuff.
![How Much Should LLC Owners Save for Taxes? [Budgeting 101]](http://i.ytimg.com/vi/pcGBaX26kfE/mqdefault.jpg)
Thanks. This makes sense. A quarterly draw sounds like a good approach. That allows you to take stock of where you are at, how you've done, and whether you've reached the point where it's wise to pull anything out yet.
This video is gold! Thank you so much for taking the time to record such a thorough, detailed video laying all of this out. So glad I took the time to watch this. Highly recommend!!
Thank you so much for your kind words! We will keep working hard to put out more valuable legal content for you!
So paying yourself is fairly straightforward when you think about it. The hard part for me is knowing how to fund yourself. If I use my personally owned equipment to conduct business is providing this equipment "funding"? If I'm a photographer, have my own camera that I use in the business, can I also use it for personal activities without "piercing the veil?". If I buy a new lens is that a business expense or a gift to myself? ..and so on.
Well laid out video for us layman's
This was so useful! Thank you!!!
Thank you! It makes us really happy to know this information is valuable to you!
Great information and well orginized. I liked the summary at the end. Also, I love Profit First! It's such an easy concept! And, I take Owner's Draws with may LLC photography business.
Thanks for your comment! PROFIT FIRST IS AMAZING! Every small business owner should read it to ensure they are keeping track of their finances correctly to ensure a profitable business (and not just break even!). Most single-member LLCs do only take an owner's draw, so you're doing it the right way!
Thanks so much Ms. Paige. You’re helping me a lot right now.❤️🙂
And thank you! This was SUPER helpful!
I have a question , since we have to pay ourselves I wanted to know if we can reinvest the money back into the business and what is the right way of doing that
Is the 15% self employment tax in addition to the 25-30% that should be put into a tax savings, or does the 25-30% cover that 15% self employment estimate?
How can I have a consultation?
Thank you for your video! I just transfer to pay myself but the account I use is not technically a business bank account... Just a separate account only used for biz! Do you have recommendations for what bank to use?
If you're an LLC, you'll want to ensure that is a legit business bank account that's attached to your LLC registration number and EIN. If you're a sole proprietor, then its okay if its just a separate checking account. For business bank accounts, I actually just recorded a new RUclips video yesterday on this subject and it'll go live next week-you read my mind! But, in the meantime, I suggest the following: the bank you currently already have your personal checking with, your local credit union or state bank, OR a nationwide bank such as Chase, US Bank, Wells Fargo, etc (these banks often have good incentives for opening a biz bank account and putting in and maintaining a certain amount in there for a few months!).
Wait if I pay myself 50% of my gross income. What about my business expenses and my employee. I may not make enough to pay myself that much. It seems like it would make sense to pay 50% of my net income. I feel like a dummy with this stuff.
I mean what I’m saying is just starting out. We are paying more than the business is bringing in right now. We rarely even get a paycheck right now.
Hi I need to create a email for my business
How I contact you for help
Thanks for all your help full videos