For the love of the breed
TRULY
Today I read an article from Forbes.com titled “Making Sure You Eat: Paying Yourself As A Small Business Owner” written by one of the Forbes staff members Kelly Phillips Erb. Of course, the title caught my eye. What do you mean feed myself? I own a business of course I’ll feed myself. Have you ever heard someone say ‘it takes 5 years to make a profit’? I think I had at least 10 people rattle that off before I tried my first business venture. They also said have at least 3years of living money put aside if I wasn’t going to keep my regular job. Today with so many different business options and so many businesses you can start with little or no money and almost no overhead that may not always be true. Either way this article is worth the read. The writer Kelly Erb highlights that it’s very important that whatever you decide to pay yourself (a reasonable amount) keep it consistent. This reflects well on you as a business owner. When banks or creditors look at your finances, or investors, or IRS it’s a good idea to have your pay be consistent and at a reasonable amount. What’s reasonable? You can base it of off what others in your field make, you can also take in to consideration how much you work, and what your work actually consists of. Ultimately it’s up to you but Kelly says it’s a good idea to pay just enough. Whatever you pay yourself is taxable but if you need to put what you pay yourself back into the business the IRS will not be knocking on your door to give you a refund, you just lose that amount. Just as you keep a business account and a personal account don’t cross-spend, don’t buy your personal care items and groceries with your business card/account! It just doesn’t look good. If you like to check out the article click here http://www.forbes.com/sites/kellyphillipserb/2015/08/24/making-sure-you-eat-paying-yourself-as-a-small-business-owner/#2880de591f79
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