Paying yourself is part of running a business, not a reward for when there is money left over. But paying yourself too much, too early, is how businesses run short on taxes or bills.
Work from real numbers
Start with what the business really brings in each month on average, not the best month. Subtract the real monthly expenses.
Set money aside first
- Taxes: a percentage your accountant recommends, moved to a separate account.
- Reserve: a small percentage for slow months and surprises, until you have a few months of expenses saved.
Then pay yourself
What is left is what the business can pay you. Pay yourself the same amount on the same days, and adjust once a quarter, not every week.
Our owner's pay planner does the math.
General information, not tax advice. How you are paid depends on how your business is set up; ask your accountant.
This article is general information, not legal, tax or regulatory advice. Rules change; confirm current requirements with the responsible agency or a licensed professional.
