How to Legally Pay Yourself
A critical, often confusing step for new business owners is understanding how to legally pay themselves without complicating their tax returns. Commingling funds—mixing business and personal money—is a common mistake that can cause major problems. This is an either/or dilemma: either risk an audit by taking cash, or create a simple, clean record.
The right way is simple: Pay yourself by writing a check or making a transfer from the business account to your personal account. This simple system provides clear, Sound recordkeeping for your business and simplifies tax time. The key is to make all business payments from the business account and all personal payments from the personal account. This Simple habit is the foundation for a compliant and successful financial life.
Ready to build a solid financial foundation? Download the free 30-day Tax Setup Checklist for New Business Owners now: https://www.safesimplesound.com/new-business-your-first-30-days-tax-setup/.
DISCLAIMER: This content is for educational purposes only and should not be considered personalized financial advice. Always consult with a qualified financial professional before making financial decisions.