00:27:23
Figuring out how to pay yourself effectively can be daunting- don't do it alone! In this episode, we walk you through key considerations for figuring out how to get paid as a business owner on the farm or ranch. Episode 56.
0:00 – Introduction
0:05 – Story of Paying Yourself as a Business Owner
2:15 – Overview of Payment Methods for Business Owners
3:50 – Details of Owner’s Draw and Its Implications
5:30 – Cash Flow Budget and Emotional Aspects of Paying Oneself
8:15 – Salary as a Payment Method
9:09 – Comparing Owner’s Draw and Salary
12:20 – Business Structure and Payment Methods
14:14 – Tax Preparation and Mental Readiness
17:16 – Capital Needs and Emotional Considerations
20:28 – Conclusion and Next Steps
In this episode, Kate, Eva, and Rachel explore the two main ways business owners can pay themselves: owner’s draw and salary. Each has benefits and drawbacks, and you may need to use one or the other depending on your business structure. Tune in to learn how to pay yourself in alignment with accounting responsibilities and your business and personal goals. Along the way we share real stories and insights into managing this essential aspect of running your own business!
This work is supported by the Farm and Ranch Stress Assistance Network (FRSAN), grant no. 2021-70035-35372/project accession no. 1027099, from the U.S. Department of Agriculture, National Institute of Food and Agriculture.
