How do I pay myself as a sole proprietor?

I am a sole proprietor and I am unsure of how to pay myself. I thought that I needed to have a personal and a business checking account and I would write myself a check when needed. But I have since read that because I am a sole proprietor, I do not need to have two separate accounts and would only need to keep track of what transactions were business and which were personal. What should I do and if I do need to write myself a check from my business how would I keep track of that?

626

Expert Alumni

Jun 1, 2019 12:30:56 PM

I recommend that you use separate accounts for business and personal. It is easier to keep track of your business expenditures that way. As a sole proprietor, paying your self is known as an owner's draw. The simplest and cleanest way to take such a draw is to write a check to yourself from the business account, then deposit it into your personal account.

New Member

Jun 1, 2019 12:30:57 PM

Thank you so much. That helps me a lot!

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How do I pay myself as a sole proprietor?