How do Business Owners Pay Themselves

Are you wondering how do business owners pay themselves as like they pay their employees? This is a common question of some people regarding how business owners manage to pay themselves and even it is quite funny to think of there is still a good answer for this, let’s find out by elaborating some viewpoints regarding this matter.

Many people are wondering if business owners also pay themselves as the way they pay their employees.

This is quite a funny thing to think of but the question should still be answered. There’s no need to get an opinion from an expert since the answer is logical. And besides, businesses have different structures or entities such as sole proprietorship, partnership, LLC, and corporation. Their salaries will be based according to the business entity, except for the single proprietorship of which the business owner is not considered as an employee but the owner himself. In a corporation or LLC, every member and shareholders are considered as employees therefore they are being paid through salaries. Same also in a partnership, partners can set up an agreement on how they can get their shares based on the profits earned by the business.

On the contrary, the question of how business owners pay themselves highly depends on how the business is running and how it reaches the goals and expectations of the company. Running a business is more than a job; it shoulders everything from paying the employees, paying the loans and debts, calculating the taxes, and other responsibilities as an owner and an employer. If you are an entrepreneur you can consider yourself as self-employed, which only means that your salary or income will be based on your hard work and how you handle the business accordingly. The salary is actually not the main point here, it really concerns on how a business owner earns a profit.

Tips on How Business Owners will Pay Themselves

If you own a business and you don’t have a partner or not part of a corporation, you can easily set up your own guidelines on how to pay yourself appropriately. But bear in mind that you have other concerns also and other bills to pay for so you should be careful in using the money. Personal use should be separated from the expenses of the business, doing this will give you a clear idea if the business is running very well. It is highly suggested that get a percentage from the earnings of the business instead of a fix rate. Decide also if you want it weekly, twice a month, or every month. This will help you to track the business if it is doing well. Without a fix rate, you will be motivated to work well and better chances of higher profits in the future.

To sum it up, it doesn’t matter if how much you are paying yourself, what is important that you are earning from the fruits of your hard work and dedication to your business.


  • Cornelius said on July 14, 2012
    Dear writer, I'm very grateful for this ideas that I learn from your website about how to pay oneself as a sole proprietor, I've been running my business for over six years now but I have no idea about this, so thanks to the writer of this article.
  • Lilian Marandu said on March 20, 2013
    I'm Tanzanian but now I live Kenya in Nairobi. I want to start a business but I'm so confuse. I have cash but problem is what kind of business I'm going to start? Please help me.
  • calvin said on March 24, 2013
    I live in pretoria I have a meat business that gives me R30000 profit if I use R20000 stock and the job takes me 5days. so I'm looking for an investor or a loan I will pay back with 35% interest any 1 who is interested call me 0733165195
  • Malisa said on April 11, 2013
    I am looking for a potential , creditable business partner to help start up a dental lab on the Texas/ Arkansas line. Anyone interested please email me.
  • Abiola Olowookere said on May 15, 2013
    Am so delighted by your article have been running my business for over 2 years now but don't know how to pay my self, what I do is that I withdrew money whenever I am in need of my personal needs, but with this impartition I will put my self in cherck.Abiola olowookere
  • Ojijo said on May 8, 2016
    Very great writer...! Am impressed with your advices


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