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?
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1 Best answer
MinhT1
Expert Alumni
Mar 17, 2020 4:24:59 PM
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.
1 Replies
MinhT1
Expert Alumni
Mar 17, 2020 4:24:59 PM
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.