Theoretically, a small business owner gains in two ways from their business, income that the business pays for their services, and capital appreciation ( loss) when the business grows (shrinks). Practically, if you structured your business as a separate entity, you should pay yourself like any other employee with witholdings. Ultimately, you should follow the advice of your accountant, who will structure the quarterly payments your business will make for taxes, etc.
by com incense - 16 hours ago
I do it the extremely easy way. My business accounts and my personal accounts are in the same credit union ... I just do an electronic transfer! But the general way of doing it would be to write a salary check to themselves. Definitely NOT a check to "Cash". That's way too easy to get confused! It honestly doesn't matter what method you use to take out the money -- what matters is that you keep accurate records of what you're taking out and why. The tax guy really appreciates that at the end of the year.
by rtfm - 16 hours ago
My Dad just wrote cheques for himself and the Accountant dealt with the rest of it. As far as I am aware you treat your wages the same way you would treat an employee so you have to use the same tax forms etc.
by Caesar - 16 hours ago
A small business owner will take a salary out of the company by writing a check to themselves
by The Destroyer - 16 hours ago
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