How Much and When To Pay Yourself?

[siobhan]

So I have my own business and have been up and running since May. To start with for the first month and a half I didn't pay myself to get some cash built up, and now I have been paying myself 25% of my monthly earnings - but I can't live off of that. I have another part time job (I work for the Chiropractor that I rent space from as their office manager about 20 hours a week - but that doesn't pay all the bills either). So what I am wondering is how often and what perceneforum.xxxe do other therapists pay themselves that have their own business? Any suggestions will be greatly appreciated too! Thanks!

 

[dyingatheist]

Hi gpcmassage,

I've been up and running full time since April. What I did was figured out how much I had to pay myself in order to get by at the same quality of life as I had been living before. I pay myself that amount every two weeks, calucluate 1/3 of that and put it into a savings account for taxes, and pray there is enough left over for rent, utilities, and insurance LOL. Let me tell you, it's a TIGHT squeeze going into October. If the time comes when I am consistently not hitting the mark, I will know it's time to get a part-time job. When the time comes that I am consistently overshooting the mark, I'll give myself a raise .

I hope that helps!

Emily

 

[code man]

It depends.

Are you a Sole Proprietor or and LLC or S-corp of which you are an employee?

What is your status with your other work -- IC or PT emp?

Are you married and if so is your spouse an employee or self Employed, and if SE, what is their legal entity.

 

[jannsody]

It depends.

Are you a Sole Proprietor or and LLC or S-corp of which you are an employee?

What is your status with your other work -- IC or PT emp?

Are you married and if so is your spouse an employee or self Employed, and if SE, what is their legal entity.

I am a sole proprietor, for the chiropractor I am a pt employee since I only work 20 hours a week - the nice thing is I only have to pay 25% of what I make on a monthly basis for rent, so that changes and saves me the hassle of making sure I am getting that much money first - and I am married and my spouse is employed with a Fire Sprinkler company so he has nothing to do with the business - however we do file joinly, or at least last year we did so....

 

[Pashy]

This what I do.

I opened a small business account with Bank of America. After I have paid all my business expencses for the week whats left over is what I pay my self. I put myself on payroll with Bank of America so I have my pay check direct deposited into my personal account. This works for my because I do not have to worry about paying my taxes

 

[the_super_pessimist]

This what I do.

I put myself on payroll with Bank of America so I have my pay check direct deposited into my personal account. This works for my because I do not have to worry about paying my taxes

How and when are your taxes going to be paid?

 

[Becky Curta]

Bank of America efiles my taxes for the State and Federal. Every time I do payroll my taxes get paid. It is very simple to do and it is FREE

 

[Zok]

I got confused when you said "pay" instead of "file"

I am on BofA, but did not realize their online payroll covered self-employed or are you an S-Corp or LLC and have yourself as an employee of that organization?

 

[felixeatsmeowmix]

I am a Sole Prop. Bank of American takes my tax money out of my account each pay period and pays when needed. You do need a Employer ID Number, which is very simple to get on the IRS website. I like the service very much because I get a pay stub , workmans comp. and umemployment if I need it.

 

[Contard H. Moshiach]

I am curious about the BofA service.

Do you have employees? Or is this service available to a sole proprietor who only has to file taxes for themselves?

 

[Questionarre]

I am a sole proprietor. No employees.

 

[Britt]

do you have a link that might have more information? I stopped at the local BOFA branch in the grocery the other day, but I believe the gal there was unaware of this service.

thanks!

 

[hvnsynt]

https://www.bankofamerica.com/smallbusiness/index.jsp