Paying a Sole prop salary

[Janny889]

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 · Accepted solution]

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.