Solved: Paying a Sole prop salary
cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

Paying a Sole prop salary

As a sole proprietor, how do I record my payments to myself. Can I record the salary as a business expense for the company and then record the income received as income for personal?

1 Best answer

Accepted Solutions
Highlighted
Expert Alumni

Paying a Sole prop salary

No, as a sole proprietor, you do not pay yourself. If your business has income, you pay income tax and self-employment tax on it.

 

You can make cash drawings on the business. These cash drawings are not reported on your tax return.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

1 Reply
Highlighted
Expert Alumni

Paying a Sole prop salary

No, as a sole proprietor, you do not pay yourself. If your business has income, you pay income tax and self-employment tax on it.

 

You can make cash drawings on the business. These cash drawings are not reported on your tax return.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

v
Privacy Settings