How To Pay Yourself As a Business Owner with Jeremy Doorn of Core Financial
Episode #258
Overview
What’s your favorite part of running your business? For most small business owners, it’s probably not running payroll and keeping up with the books. This week Jeremy Doorn of Core Financial returns to the podcast to answer tax and accounting questions from our listeners. How do I pay myself? How much should I pay myself? Should I be an LLC or S-Corp? We get answers to all these questions and more this week on the Grow Your Video Business Podcast.
Key Takeaways
- Setting up the correct business structure can save you tons of money in taxes if you’re business is ready for it.
- There are systems that you can use to pay yourself correctly to make accounting and bookkeeping easier and to make sure you're maximizing your tax deductions.
- Forming an S-Corp offers multiple benefits for most small business owners.
About Jeremy Doorn
As a ten-year-plus employee of Core Wealth Management, Jeremy Doorn helps small businesses do a better job of tax planning. In addition to firm administration, he handles business advisory services and business succession planning for his clients.
LLC vs. S-Corp
If you’ve been in business very long you’ve probably heard people argue about whether or not you should file as an LLC or an S-Corp, Jeremy breaks down the main differences between the two, what type of business benefit for each category, and when you should consider changing your status.
In This Episode
- Sole Proprietorship vs S-Corp/LLC [6:45]
- How do I pay myself? [12:00]
- How much should I pay myself? [22:30]
- How to pay yourself if you have multiple DBAs [25:45]
- How to pay yourself in a partnership [27:00]
- How to pay yourself when you’re just getting started [31:00]
- Why Ryan uses Core Financial [34:20]
- How to set up a discovery call with Core Financial [36:30]
Quotes
“If you’re going through your personal checking account to figure out all your business stuff, you’re going to miss something, and you’re going to either be paying too much in tax or too little…”
“The IRS actually calls LLCs ‘disregarded entities’, they don’t mean anything for federal tax purposes.”
“The real reason that people make the S-Corp election is to save on unemployment tax…”
“I don’t recommend that anyone do payroll themselves, it’s a terrible idea…”
Links
Join the Grow Your Video Business Facebook Group