Which Way to Payday?
A recent survey found that 73% of small-business owners funded their startup businesses primarily with personal savings. Additionally, it cost the average business owner $10,000 to get the venture off the ground. Even though small-business owners put a lot into their companies, including time and capital, sometimes it’s hard to determine exactly how much to take out. When figuring an appropriate salary, there are several factors to keep in mind. Taxes The way the IRS taxes an owner’s compensation is partially determined by the way a business is structured. Company profits for C corporations are taxed at the corporate rate,…