Jarell explains how to pay yourself as a sole prop. Hint: an owner's draw.

What is an owner's draw?
An Owner's draw means taking money from the business for personal use.

How is it taxed?
In a sole prop, both the owners draw and the business profits are taxable on your personal income tax return.

How much do you take?
It's completely up to you. Just make sure that however much you take is both available in your bank account and you have accounted for any taxes you may owe down the road.

How do you do the draw?
You can take the draw by cutting yourself a check, an electronic money transfer or by doing a cash withdraw.

And don't forget: Always check with your CPA to ensure that you are capturing your owner's draw correctly.

Interested in learning more about owner's draw? Check out the articles below:

[READ] Want to Do an Owner’s Draw? Here’s the Overview You Need
https://goo.gl/NEnaiX

[READ] How Much Can I (and Should I) Pay Myself? https://goo.gl/co2U8C

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