Paying a Sole prop salary

Janny889 · ‎March 17, 2020

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?

MinhT1 · ‎March 17, 2020

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.

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View solution in original post

MinhT1 · ‎March 17, 2020

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"

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Paying a Sole prop salary