If you’re an entrepreneur who doesn’t know how to pay yourself this post is for you. I know it can be confusing, so I’m here to clear it up so this doesn’t hold you back anymore.

If you’re an LLC or sole-proprietor, simply transfer money from your business to your personal accounts. You can write a check or do a bank transfer. This money will be categorized as Owner’s Pay on the balance sheet. It is not a business expense.

If you’re a S or C Corporation, you’ll pay yourself as an employee on payroll along with distributions to maximize tax benefits. Every state and situation is different, so ask your bookkeeper or accountant for details.

Need help with your payroll? I offer this service to my monthly clients!

Did you know that some entrepreneurs are afraid to pay themselves?

One of the biggest fears entrepreneurs have is that if they take money out of their business, they won’t have enough left to cover expenses. And this can be a legitimate fear. Sometimes you don’t have enough to keep the business afloat. But this is actually a symptom of a deeper problem (either overspending or undercharging, but that isn’t the purpose of this post).

Your business needs to be profitable enough to support both your business expenses and YOU. If you never take a paycheck, your business might not be sustainable long term.

Waiting for the "perfect time" to start paying yourself rarely works. If you keep putting it off, you’ll get stuck in a cycle where your business always comes first, and you never see the rewards of your hard work.

The Solution: Start small. Even if it’s just 5-10% of income, build the habit of paying yourself consistently. If your business can’t handle that, it’s a sign you need to adjust pricing or cut unnecessary expenses.

Your business should serve you—not the other way around. Start paying yourself and watch how your mindset and finances shift!

Your business exists to PAY you. Your business shouldn’t eat up all your profits. Paying yourself isn’t a bonus; it’s a necessity.

Over the years I’ve noticed a few reasons people don’t pay themselves:

1️⃣Afraid they won’t have enough money to pay their business expenses (or sometimes they literally don’t have enough money left to pay themselves after their expenses)

2️⃣Don’t know how to do it (i.e. do I write myself a check, is it a business expense, etc)

3️⃣Saving it in the business for a rainy day

Over the next few posts I’m going to debunk each of these reasons people don’t pay themselves so check back soon!