Hi! Welcome back to another episode of The Female Empowered Podcast. Let’s talk about how to pay yourself as a business owner and why it matters.
This topic is something that comes up during our coaching programs and our Mastermind.
I personally had no idea about how to do this when I started my business. So, let me help you understand the various ways how you can start paying yourself as a small business owner and what the implications are based on how you choose to pay yourself!
Just a word of caution, what I will be discussing in this episode is based on my personal experiences. So please, still make it a point to consult with your accountant, your financial team, your bookkeeper, an attorney, and the like.
Let’s dive into:
- Introduction to the topic
- As an LSC/S Corp, you can pay yourself through salary
- Factors to consider when paying yourself through salary
- As an LSC/S Corp, you can pay yourself through owner’s draws or distribution
- Difference between salary and owner’s draw
- Factors to consider when paying yourself through owner’s draw
- As an LSC/S Corp, you can pay yourself through profit share/profit distribution
- Factors to consider when paying yourself profit share/profit distribution
- Advantages of owner’s draw
- Drawbacks of owner’s draw
- My personal number one reason why taking owner’s draw versus a salary is a drawback
- My personal experience on taking a very low salary and an owner’s draw
- Why is it important to decide how much you’re going to pay yourself and how you’re going to pay yourself
If you are interested in knowing more about this matter, you can check out my audio course here: https://www.christagurka.com/audiocourses.
Thanks for listening! If you enjoyed this episode, please leave a review for the show to help other female fitness and wellness professionals find our podcast!
Interested in being a guest on a future Female Friday episode? Email me at [email protected]!