How To Pay Yourself As A Business Owner | Single-Member LLC | Small Business 101 Part 6
Congratulations, you've started a business. You've figured out how to get an LLC, and now you want to know what to do after you form an LLC.
In this episode, you'll discover how to pay yourself as a business owner with a single-member LLC and how to make sure that you profit first in your small business.
You're watching the Online Business Clinic, the place to be to build a profitable portable online course business, one that allows you to create a lifestyle and financial freedom, aka building true wealth.
You're tuning into episode 6 of a multi-part small business 101 training series. Be sure to go back and watch the first few episodes by accessing the link in the show notes.
I am not a licensed attorney or CPA, just a small business owner who's figured a few things out and shared my insights along the way.
This episode is for informational purposes only; please consult your local professionals to ensure that you're making the best decisions for your unique small business.
Separate Your Business Finances From Your Personal Finances
Now that you're a formal business entity, it's time to set up your finances properly by taking your new EIN (employer identification number) to the bank and establishing separate bank checking and saving accounts.
You've gone through the efforts of legally protecting your business by filing an LLC; now, it's time to honor that protection by separating your daily living expenses from your business operating expenses.
This step is crucial if you're going to properly pay yourself as a business owner with a single-member LLC.
Separating your business finances from your finances will save you from a major headache down the road.
Create & Follow A Cashflow System
Traditionally business owners will take their gross sales, subtract expenses and consider the remaining balance profit.