Many small business owners have no problem in working untold amounts of hours to further their business, but they do have a hard time when it comes to paying themselves. In most cases, the IRS will require you to show that you earn a salary from a company that you own in order to not audit you for taking undue money from the business. The trick is learning how much you need to make and then taking that money instead of in essence working for free. The following are a few tips you can implement to pay yourself for working those long hours in your office space rental.
Visit an Accountant
The first thing any business owner needs to do before they open their doors is hiring an accountant to help them sort through all of the numbers and endless amount of tax code that has to be abided by. When you start to pay yourself, you need to speak with your accountant and get an idea of what your business can afford and what is permitted by law for you to take. This will help you to not put your business in a bind financially or legally.
Investigate Other Businesses
The best way for you to assess how much you need to pay yourself is by investigating how much other company’s pay their CEO’s and then go from there. You do not want to pay yourself too much because you may hurt your company financially. If you do not pay yourself enough, then you may run the risk of catching the attention of the IRS, which is never a good thing for a small business. Be sure to do your homework before you arrive at a number for how much you need to pay yourself in your office space rental.
At Business Workspaces, we offer you the office space rental and amenities that you need to be productive and grow your business. You can get the tools that you need at the price you can afford.