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nmcorp
03-29-2006, 02:00 AM
I started my own company about a few months back and do not know which is the best way I should pay my self. What I do for the company is basically everything. I take care of the taxes, the work, which is software design and internet serivces. Should I hire my self as a Contractor or regular employee? By the way, the company is a corporation. I also dont really need much out of the company and so can I just make widthdraws for whenever i need me money?

Thanks.

jfab
01-15-2014, 10:47 PM
I guess it depends really on your budget. If you think you can afford to hire yourself or give yourself the payment of a regular employee then it's okay to do it. If not, then it's best to just really get the money that you need to survive. I see the dilemma here because it's your own money and investment and it's kind of hard and confusing on how you'll deal with it if you're the one who is doing all the work.

LindaKay
01-15-2014, 11:24 PM
I think you're better off as a contractor, but I don't really know. You might be better off getting advice from others. JFab seems to really know the drill.

P&T Consulting
01-16-2014, 12:10 PM
Hello, I think a lot of people starting up companies run into the same dilemma your in. When I first started my business I just used one account for everything, which turned into an accounting nightmare! My second year in business I decided to leave my corporate bank account open and open a personal checking with the same bank. Every two weeks I started transferring funds into my personal account; as if I was on someone’s payroll. Anything that I can write off as a business expense gets paid under the corporate account and I use my personal checking for everything else.

AlvinsGiftsDis
01-16-2014, 12:36 PM
I started my own company about a few months back and do not know which is the best way I should pay my self. What I do for the company is basically everything. I take care of the taxes, the work, which is software design and internet serivces. Should I hire my self as a Contractor or regular employee? By the way, the company is a corporation. I also dont really need much out of the company and so can I just make widthdraws for whenever i need me money?

Thanks.

you really want to talk to an accountant or tax attorney. in most cases you pay yourself as an officer of the company not an employee. (for bookkeeping reasons) Consult with an accountant first. you always want to save your ass when you're dealing with taxes.

pandandesign
01-18-2014, 03:39 PM
You basically have a bank account that is strictly used for your business and you keep it that way because all the expenses and payments come straightly to that account. If you think you're making money, and I hope you do, you can write yourself a check and take the money off that account. However, something can be done that's tax deductible and you can write off some things such as gas mileage if you use for business and some supplies. I would not know whether or not you can withdraw money from the bank account because that's the question I also want to ask as well. I would contact the accountant, which I assume you should have one, and ask about it. Hope everything goes well to you!

owesem75
01-21-2014, 11:17 AM
I would suggest that you treat your company as a separate entity that must have its own separate bank account and not in anyway connected to your personal bank account. Of course, you have control over the finances, but for formality and record purposes it is best that you separate from it and consider yourself as an employee being paid on a monthly basis (or create a ledger with a name that records your withdrawal). This way, you will be able to monitor your cash flow, your expenses and your income. Although this was just my personal opinion, it is best to consult a professional accountant for this matter. Good luck to you!

MikeLevin
03-22-2017, 05:22 AM
It's always better to pay yourself as an employee at the beginning and use the rest of income for business developing, advertising and marketing

reshyam
03-26-2017, 12:56 AM
Hi Guys,
Well come to this forum site. Here you can find lots of things. We have thinking a lot of people starting up companies run into the same dilemma your in. When first started my business We just used one account for everything, which turned into an accounting nightmare! My Frist year in business I decided to leave my Indian bank account open and open a personal checking with the same bank. April two weeks I started transferring funds into my personal account

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