Tips for compensating yourself
Read about the options for paying yourself. Consult your tax advisor for guidance.
As a small business owner, there are many options for taking money out of your business to pay yourself. Individually and in combination these different methods may offer you some real advantages in terms of tax-savings and liquidity (having assets that can be readily converted into cash).
Deferred compensation (when a portion of your income is paid out at a date after the income was earned) may postpone your payment of taxes on that income. Income shifting (transferring some of your earnings to other family members to reduce your taxes), may also have financial benefits related to your estate, the wealth you’ll pass on to your family when you die.
Consult with your tax advisor and perhaps a business attorney to determine the most advantageous and cost-effective ways to compensate yourself.
Compensate Yourself Wisely
Explore the options and advantages with your tax advisor
Salary Paid expenses
Benefits Rental income
Retirement plan Deferred compensation
Life insurance Income shifting
Click the Next button to continue