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Thinking of Becoming an Entrepreneur? How Much You Should Pay Yourself

becoming an entrepreneur

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  • Being an entrepreneur is exciting!

    Maybe you have dreams of opening a small business after you graduate, or maybe you’ve already started, and business is booming.

    Either way, you’ll want to get a good sense of how much you should pay yourself.

    You’ll want to pay yourself at least something to show the IRS you’re a legitimate business, understand the true costs of running your business, and avoid burnout. The question is how much. The average entrepreneur makes around $70,000, but this varies widely. (Consider Mark Zuckerberg who pays himself $1!).

    There are two main ways to pay yourself — owner’s draw and salary. You’ll want to explore the tax and accounting implications of each.

    Fundera created an infographic to help you settle on the entrepreneur salary that’s right for you. Check it out!

    Here

    Image Credit: by Pixabay

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