Top 5 Tips for Paying Yourself

The top 5 tips weekly post is always full of hints and tips for small, home & micro business owners.

• If possible, get some advice from your accountant regarding the level of pay you plan on taking from the business.
  
• Research the going rate for CEOs in your industry.
• Learn about how your company structure affects pay.  Salary and bonuses are taxed differently to dividends.
• Don’t pay yourself too much or you will harm the company.  Don’t pay yourself too little or the taxman will be suspicious.
• If you paid yourself very little in the early years of trading don’t be ashamed to compensate yourself when the business becomes successful.

If you have additional tips, please share them in the comments section.

6 Responses to “ Top 5 Tips for Paying Yourself ”

1. Fiona Stapleton
   
   Said on February 3rd, 2010 at 12:43 am

   This is really good advice. Paying yourself too much money is probably one of the biggest reasons why new businesses fail because not enough money is being put back into the business.

2. Larry Jacobs
   
   Said on February 3rd, 2010 at 12:17 pm

   Its a great advice! Thanks for sharing!

3. John Bryant
   
   Said on February 5th, 2010 at 6:13 pm

   A friend that I prepared a business plan for paid himself too much and it ultimately led to the businesses demise. Some very good points here.

4. Bruce
   
   Said on February 6th, 2010 at 7:27 pm

   Many small busineeses in today’s economy it ends up where the owner either takes no or very little pay just to keep the business afloat. This is especially true in the construction industry during the slow times of the year

5. Bosco
   
   Said on February 20th, 2010 at 8:26 am

   Its a great tips for us ,and i love this blog,so many informative tips,thanks Stefan.

6. Scott
   
   Said on May 16th, 2010 at 1:16 pm

   I absolutely agree with Fiona. New businesses need to put in as much money as they can in order to grow their businesses big and then probably think about paying yourself too much

Leave a Reply

I would love to hear from you, please let me know what your take on my blog post is. In order to stop spam on my blog and increase conversations, I had to implement some simple rules:

1. Please enter your real name, not your company, product or service's name.
2. If you enter your URL, your name will become a link to the URL.
3. We may send you a confirmation email to check you are a real person

We are sorry but any violation of the above rules will mean an automatic removal of your comment.