Episode 08: Foundations Part 2: Paying Yourself

Now that you’ve narrowed down what entity type fits best, it’s really common for entrepreneurs wonder about the best way to pay themselves.

For sole proprietors, single member LLCs and partnerships, for the most part you can’t pay yourself wrong. You’ll be taxed on all of the profits either way, whether you pay yourself all the profits or leave them all in the business account.

For an S-Corp election, you will need to run payroll in order to get the tax benefits. I recommend using Gusto for your payroll. As for timing, you can set that up however works best for you.

Just be aware that as an S-Corp you can’t just transfer money to yourself without either running it through payroll as a bonus or writing yourself a check as a profit share.

We cover ALL of this in the “Get Your Finance Sh*t Together” self-study course at confidentmoneypodcast.com!

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Music credit: Neon Fairies by Wolves 

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