You’re an Entrepreneur With a New Business. When Should You Start Paying Yourself a Salary?

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You're an Entrepreneur With a New Business. When Should You Start Paying Yourself a Salary?

By Kathleen Furore
From Tribune Content Agency
Several people I know have decided to turn their entrepreneurial dreams into reality and have launched small companies—some alone, some with one or two business partners. Most aren't taking a salary. What should entrepreneurs who are principal owners of a new business venture consider before they start paying themselves? And do they have to pay minority owners too?
Like most business issues, there isn't a one-size-fits-all answer. Business pros suggest asking a few questions to help decide when and how to take a salary as a start-up entrepreneur.
How is your business structured? "Paying yourself as a startup owner is not just about setting the wage; legal issues also matter. Your entrepreneur's salary strongly depends on your startup's legal and tax structure," says Maciej Kubiak, head of people at PhotoAiD. "So, identify your business structure and learn about the rules and regulations of taxation. Knowing if you are an LLC or a sole proprietorship company, you will plan your entrepreneurial salary in accordance with the law."...

Source: You're an Entrepreneur With a New Business. When Should You Start Paying Yourself a Salary?

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