Stop Treating Your Business Account Like an ATM 🏧

“I worked 60 hours this week… can I finally pay myself?” 😫

The answer is yes! But how you do it depends entirely on how your business is structured. If you get it wrong, you’re either inviting an audit or paying way too much in taxes.

Here are the two main ways to get paid in 2026:

✍️ The Owner’s Draw: (Best for Sole Props/LLCs) You move money from the business to your personal account. Crucial Note: This is NOT a tax deduction. You are taxed on the profit of the business, not just what you “draw” out.

🏢 The W-2 Salary: (Required for S-Corps) You pay yourself like an employee. It’s a business expense, it reduces your profit, and it requires “Reasonable Compensation.”

The #1 mistake I see? 🚩

Business owners who take a “Draw” but forget to set aside money for their quarterly estimated taxes. When April rolls around, they realize they’ve spent the government’s money on their own rent.

Are you struggling to figure out what “Reasonable Compensation” looks like for your S-Corp? Or are you a Sole Prop who isn’t sure how much you can safely draw? Let’s talk.

👇 Click the link below for a Free Consultation. Let’s make sure you’re getting paid legally and efficiently.

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