Your business structure is one of the main factors in russian phone number search determining how much you'll pay. For example, if you structure your business as an S or C corporation in the United States, it may be more tax-efficient to pay yourself a small but reasonable salary and then take out more money through dividends.
An important point to note is that it is legal to pay yourself . For example, in the United States, outside of a sole proprietorship (where you can pay yourself through an owner's draw), you should not use business funds at will. Any funds withdrawn from your business to a personal account (through salary, bonuses, or dividends) should be properly documented.
If you don't keep track of when and why you pay yourself through business funds, you put yourself at risk for an IRS audit. This is bad for you, your business, and your brand. Your customers may lose confidence in your business, and you'll be left with a large expense.
Consult an accountant to find the most tax-efficient way to pay yourself based on the legal structure of your business.
Opportunity Cost
Any money you take out of a business has an opportunity cost.
Opportunity cost is the loss of other alternatives when choosing one alternative. If your business has any existing opportunities, it makes more sense to maximize opportunities and minimize salary.
Let's say you're running a successful Facebook ad campaign. For every $1 you invest, you earn $1.50 back - a direct 50% profit.
Experienced e-commerce business owners know that profitable campaigns like this are rare. You want to maximize your returns by investing all your spare money into your campaign.
Keep this in mind when calculating your salary. If you identify any current or future opportunities, reduce your salary and invest that money into the business.