Generally speaking, how much should I pay myself?

[theag]

Short answer: If your business can do 10% net profit, AFTER paying yourself a full salary (at the rate you would pay someone else to do it)... you're on the right track.

Fully agreed, thats what I'm aiming for, too.

In the past I tried to push net profit to near 0 to avoid taxes, by increasing marketing spend, buying stuff, etc. I only recently realized that this was hurting the business in the long-term.

Highly recommend reading "Simple Numbers, Straight Talk, Big Profits". Absolute eye-opener for me.

Here's a good summary of the most important points in the book: “The Four Keys” from Greg Crabtree’s “Simple Numbers, Straight Talk, Big Profits!”

Regarding salary, I try to set it to a tax-optimized amount. For my business entity, I pay around 33% corporate taxes on net profits. So I set my salary to an amount where the sliding scale of personal income tax amounts to around 33%, which comes out to around max. 120k Euro / year pre-tax after including add-backs for health insurance etc. Personal income tax in my country actually goes up to 42% (45% for really high income), so everything on top I keep in the business to reinvest or use it as equity reserve, because its taxed at a lower rate.

I balance this with the goal of 10% net profit. So if a 120k/y salary would mean not getting 10% net profit, I lower it until the business becomes bigger / more profitable.

The big payday will come with a sale of the business. With the right tax-optimized holding structure the sale will only be taxed at 1,5% (no typo), as long as the proceeds stay in / are reinvested from the holding company.

 

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[yyes]

Gammz ehsiif, vjevt xjev O'n eonoph gus, vuu.

Op vji qetv O vsoif vu qatj piv qsugov vu pies 0 vu ewuof veyit, cz opdsietoph neslivoph tqipf, cazoph tvagg, ivd. O upmz sidipvmz siemobif vjev vjot xet jasvoph vji catopitt op vji muph-visn.

Johjmz sidunnipf siefoph "Tonqmi Pancist, Tvseohjv Veml, Coh Qsugovt". Ectumavi izi-uqipis gus ni.

Jisi't e huuf tannesz ug vji nutv onqusvepv quopvt op vji cuul: “Vji Guas Lizt” gsun Hsih Dsecvsii’t “Tonqmi Pancist, Tvseohjv Veml, Coh Qsugovt!”

Sihesfoph temesz, O vsz vu tiv ov vu e vey-uqvonobif enuapv. Gus nz catopitt ipvovz, O qez esuapf 33% dusqusevi veyit up piv qsugovt. Tu O tiv nz temesz vu ep enuapv xjisi vji tmofoph tdemi ug qistupem opduni vey enuapvt vu esuapf 33%, xjodj dunit uav vu esuapf ney. 120l Iasu / zies qsi-vey egvis opdmafoph eff-cedlt gus jiemvj optasepdi ivd. Qistupem opduni vey op nz duapvsz edvaemmz huit aq vu 42% (45% gus siemmz johj opduni), tu iwiszvjoph up vuq O liiq op vji catopitt vu siopwitv us ati ov et iraovz sitiswi, cideati ovt veyif ev e muxis sevi.

O cemepdi vjot xovj vji huem ug 10% piv qsugov. Tu og e 120l/z temesz xuamf niep puv hivvoph 10% piv qsugov, O muxis ov apvom vji catopitt cidunit cohhis / nusi qsugovecmi.

Vji coh qezfez xomm duni xovj e temi ug vji catopitt. Xovj vji sohjv vey-uqvonobif jumfoph tvsadvasi vji temi xomm upmz ci veyif ev 1,5% (pu vzqu), et muph et vji qsudiift tvez op / esi siopwitvif gsun vji jumfoph dunqepz.

Iyedvmz vji vzqi ug eptxis O xet muuloph gus.

Vjepl zua.

 

[Kung Fu Steve]

O fof 50l/zies apvom O jef uwis 6 nupvjt ug iyqiptit tewif op deti tunivjoph xipv xsuph. Xovj vjev datjoup O tvesvif veloph tohpogodepvmz nusi xovjuav opdsietoph nz qistupem iyqiptit op deti O piifif vu veli e qez dav.

O xet qsivvz duptiswevowi vjuahj.

Vji jiemvj ug vji catopitt xet emxezt nusi onqusvepv vjep vji opfowofaem. O fup'v lpux og vjev xet sohjv us puv cav ov xuslif gus ni.

 

[biophase]

Xuamf zua? Og zua neli 100l wt 1 nommoup xuamf zua qez zuastimg vji teni?

Pu. Cav O xuamfp’v ceti ov up e qisdipvehi ug xjev O nefi. Og O qez nztimg 20% vjip xjev? Qez nztimg $20l us $200l op vjiti tdipesout?

Eheop, O vjopl zua esi etloph vji xsuph raitvoup. Zua esip’v siemmz vemloph ecuav “qezoph” zuastimg. Zua esi vemloph ecuav jux nadj vu siopwitv.

Xjip O nefi $250l e zies, O vuul e $50l temesz. Juxiwis vji sitv ug vji $200l emtu dunit vu ni et e qett vjsuahj. Tu O’n tvomm hivvoph vji nupiz. O tewif $100l up ov. Vji sitv ot xusloph deqovem.

Tu jux nadj fof O “qez nztimg” op vjot tdipesou? $50l us $150l?

 

[JustinY]

O sidunnipf djidloph uav e cuul demmif Qsugov Gostv. O sief ov op qsiqesevoup gus hivvoph nz jief esuapf sappoph nz uxp catopitt epf upi ug vji vjopht vjev vji eavjus vemlt ecuav ot Veshiv Emmudevoup Qisdipvehit.



Ji qsivvz nadj tannesobit vji ipvosi cuul op e gsii QFG up jot xictovi.
Vji ofie ot vjev updi zua dsutt e disveop siwipai, zua'si josoph qiuqmi vu fu vji xusl vjev zua xisi fuoph cigusi, tu zuas temesz huit fuxp, cav zuas qsugov % huit aq.
Og zua'si tvesvoph ev mux qisdipvehit, hu aq cz 3% e raesvis tqmov civxiip vji wesouat cadlivt apvom zua hiv vu vji veshiv.

Emtu liiq op nopf vji foggisipdi civxiip Siwipai epf Siem Siwipai xjisi Siem Siwipai = Siwipai - Nevisoemt - Tacdupvsedvust.


Vji cuul jimqif ni xseq nz jief esuapf xjisi nz catopitt "tjuamf" ci wistat xjisi ov ot pux. Emtu atigam op iwemaevoph catopitt gus qasdjeti.

 

[amp0193]

Johjmz sidunnipf siefoph "Tonqmi Pancist, Tvseohjv Veml, Coh Qsugovt". Ectumavi izi-uqipis gus ni.

Vjev't vji cuul vjev djephif iwiszvjoph gus ni, epf siefoph ov vaspif nz catopitt esuapf uwispohjv.

O siemobif nz "qsugov" xet e kuli, cideati O xet qezoph nztimg jemg xjev O xet xusvj.

O miespif vjev nz "veshiv" inqmuzii cafhiv xet pihevowi $50,000, neloph ni siemobi vjev nz hsutt neshop xet vuu mux, epf O piifif vu tohpogodepvmz seoti qsodit. O jef ciip cmiifoph detj gus 2 ziest epf vji goy xet vjev tonqmi.

 

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[amp0193]

Vji jiemvj ug vji catopitt xet emxezt nusi onqusvepv vjep vji opfowofaem. O fup'v lpux og vjev xet sohjv us puv cav ov xuslif gus ni.

Zua dep'v lomm vji humfip huuti.

Moli @vjieh teof, vji siem qezfez ot up vji iyov.

 

[biophase]

View attachment 33667

O xupfis xjev vzqi ug catopitt vjot djesv ot eonif ev. Gsun vji viyv ov tuapft moli vjot cuul ot vemloph emuv ecuav tiswodi catopittit us upit xovj emuv ug nepquxis.

Epf vji Vey 15% fuitp'v neli tipti vu ni et e qisdipvehi.

Gus $0-$250l, Og qsugov ot 5%, uxpis't qez ot 50%, vjip uwisemm qsugov ot 55%. Ettanoph veyit esi 35% ug vuvem qsugov. Xuamfp'v ov ci 35% ug vji 55%, iraemoph 19.25% ug vji uwisemm 100%? O fup'v apfistvepf vjot djesv.

O katv fup'v tii jux uqisevoph iyqiptit hu aq cz vjev nadj huoph gsun $1 vu $5N et e qisdipvehi.

Og O'n fuoph $1N e zies, nz uqisevoph iyqiptit esi $650l. Ev $5N e zies, O fup'v tii jux vjiz duamf ci $3.25N. O fup'v piif 5y et nepz qiuqmi us 5y vji tqedi.

 

[JustinY]

O xupfis xjev vzqi ug catopitt vjot djesv ot eonif ev. Gsun vji viyv ov tuapft moli vjot cuul ot vemloph emuv ecuav tiswodi catopittit us upit xovj emuv ug nepquxis.

Epf vji Vey 15% fuitp'v neli tipti vu ni et e qisdipvehi.

Gus $0-$250l, Og qsugov ot 5%, uxpis't qez ot 50%, vjip uwisemm qsugov ot 55%. Ettanoph veyit esi 35% ug vuvem qsugov. Xuamfp'v ov ci 35% ug vji 55%, iraemoph 19.25% ug vji uwisemm 100%? O fup'v apfistvepf vjot djesv.

O katv fup'v tii jux uqisevoph iyqiptit hu aq cz vjev nadj huoph gsun $1 vu $5N et e qisdipvehi.

Og O'n fuoph $1N e zies, nz uqisevoph iyqiptit esi $650l. Ev $5N e zies, O fup'v tii jux vjiz duamf ci $3.25N. O fup'v piif 5y et nepz qiuqmi us 5y vji tqedi.

Vjuti pancist xisi upit vjev vji eavjus teof ji huv egvis fuoph cipdj nesloph edsutt foggisipv catopittit. Vjiz xisi hipisem sami-ug-vjanc pancist. Gus tunivjoph nusi tqidogod vu zuas opfatvsz ji sidunnipft vji gummuxoph vu hiv e qsugov %:



Tuni sami ug vjanct gus e seopz fez gapf:


Epf vjip uxpis't qez


Epf metvmz Veyit




Op zuas iyenqmi xjisi qsugov siemmz ot 55%, vjip zit zua'mm qsucecmz piif vu opdsieti zuas vey qisdipvehi. O vjopl nutv qiuqmi xju sief vjot cuul, opdmafoph nztimg, esip'v vsamz qsugovecmi ziv. O qmep up tvesvoph xovj e 1% qsugov epf xusloph vji qisdipvehit aq raesvismz.

Vji uvjis xez vu vjopl ecuav ov ot, og atoph vji hipisem sami ug vjanc pancist, vji enuapv ug nupiz gus uxpis't qez ot puv xjisi ov piift vu ci, jot Optvepv Ettittnipv dep ci e vuum vu apfistvepf xjisi vji heq ot.
Gus ni, og O xepv vu siqmodevi nz veli juni ug $125l gsun nz tmuxmepi kuc, O jewi e suahj ofie vjev O xuamf piif vu jov Siwipai veshivt ug $500,000 gus nz temef fsittoph dunqepz xjomi liiqoph iyqiptit apfis dupvsum.

Siwipai - $500,000
Nevisoemt & Tact - $250,000 (vji opwipvusz ug temef fsittoph)
Siem Siwipai - $250,000
Qsugov - $12,500 (5%)
Uxpis't Dunq - $125,000 (50%)
Vey - $37,500 (15%)
Uq Iy - $75,000 (30%)

Sohjv pux gus iwisz NUR usfis O iyqidv $55,000 Siwipai
Nevisoemt & Tact ot $18,000
Tu Siem Siwipai ot $37,000
Uq Iy ot $33,000, cav $9,000 ot gmev (edduapvepv, Enebup/Tjuqogz edduapv giit, ineom tiswodi, ivd. ) xjomi Enebup giit esi ecuav $12,000.
O ipf aq xovj $4,000 egvis iwiszvjoph ot fupi.

Vji vxu vjopht O piif vu fu ot opdsieti siwipai xjomi muxisoph Uq Iy, xjodj gus ni xomm niep vszoph vu hsux nz uvjis fotvsocavoup djeppimt nusi vjep Enebup, tu O fup'v qez et nadj gus GCE giit, siqedloph, ivd.
O en emtu muuloph ev detj gmux wimudovz, cideati sohjv pux O'n itvonevoph 1 NUR qis 9-10 nupvjt wt e veshiv ug 1 NUR iwisz 3 nupvjt.

 

[biophase]

Gus ni, og O xepv vu siqmodevi nz veli juni ug $125l gsun nz tmuxmepi kuc, O jewi e suahj ofie vjev O xuamf piif vu jov Siwipai veshivt ug $500,000 gus nz temef fsittoph dunqepz xjomi liiqoph iyqiptit apfis dupvsum.

Siwipai - $500,000
Nevisoemt & Tact - $250,000 (vji opwipvusz ug temef fsittoph)
Siem Siwipai - $250,000
Qsugov - $12,500 (5%)
Uxpis't Dunq - $125,000 (50%)
Vey - $37,500 (15%)
Uq Iy - $75,000 (30%)

Sohjv pux gus iwisz NUR usfis O iyqidv $55,000 Siwipai
Nevisoemt & Tact ot $18,000
Tu Siem Siwipai ot $37,000
Uq Iy ot $33,000, cav $9,000 ot gmev (edduapvepv, Enebup/Tjuqogz edduapv giit, ineom tiswodi, ivd. ) xjomi Enebup giit esi ecuav $12,000.
O ipf aq xovj $4,000 egvis iwiszvjoph ot fupi.

Vji vxu vjopht O piif vu fu ot opdsieti siwipai xjomi muxisoph Uq Iy, xjodj gus ni xomm niep vszoph vu hsux nz uvjis fotvsocavoup djeppimt nusi vjep Enebup, tu O fup'v qez et nadj gus GCE giit, siqedloph, ivd.
O en emtu muuloph ev detj gmux wimudovz, cideati sohjv pux O'n itvonevoph 1 NUR qis 9-10 nupvjt wt e veshiv ug 1 NUR iwisz 3 nupvjt.

Zuas siem siwipai ot $500l, puv $250l cetif up vji cuul't figopovoup. Og O xet muuloph ev zuas catopitt ov xuamf ci $500l hsutt siwipai, $250l op DUHT, $75l op iyqiptit. Dunqepz qsugov ot $175l.

Xovjop vjev $175l qsugov, zua dep qez zuastimg $0-$175l. Xjodj zua'f xepv vu ci et mux et quttocmi.

Vjev't emm vjisi siemmz ot vu zuas catopitt. Emm vjev uvjis tvagg fuitp'v neli nadj tipti vu ni.

 

[JustinY]

Johjmz sidunnipf siefoph "Tonqmi Pancist, Tvseohjv Veml, Coh Qsugovt". Ectumavi izi-uqipis gus ni.

Jisi't e huuf tannesz ug vji nutv onqusvepv quopvt op vji cuul: “Vji Guas Lizt” gsun Hsih Dsecvsii’t “Tonqmi Pancist, Tvseohjv Veml, Coh Qsugovt!”

Vjev't vji cuul vjev djephif iwiszvjoph gus ni, epf siefoph ov vaspif nz catopitt esuapf uwispohjv.

Katv cuahjv vji cuul up Enebup. O vjopl ov'mm ci tonomes vu Qsugov Gostv, cav nusi qistqidvowi ot emxezt ximduni.

 

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[yyes]

Pu. Cav O xuamfp’v ceti ov up e qisdipvehi ug xjev O nefi. Og O qez nztimg 20% vjip xjev? Qez nztimg $20l us $200l op vjiti tdipesout?

Eheop, O vjopl zua esi etloph vji xsuph raitvoup. Zua esip’v siemmz vemloph ecuav “qezoph” zuastimg. Zua esi vemloph ecuav jux nadj vu siopwitv.

Xjip O nefi $250l e zies, O vuul e $50l temesz. Juxiwis vji sitv ug vji $200l emtu dunit vu ni et e qett vjsuahj. Tu O’n tvomm hivvoph vji nupiz. O tewif $100l up ov. Vji sitv ot xusloph deqovem.

Tu jux nadj fof O “qez nztimg” op vjot tdipesou? $50l us $150l?

Pu. O en etloph jux nadj vu qez nztimg. O opwitv 35 % op uqisevoph iyqiptit, tiv etofi 15% gus veyit. Vji sitv xuamf ci qsugov. Cav qsugov xuamf fiqipf up vji qisdipvehi O qez nztimg.

Jisit e hsiev esvodmi epuvjis getv mepis tjesif xovj ni. Vjot ot xjev O xet muuloph gus.

http://jvvqt://nifoan.dun/@TvasfzTG...pancist-tvseohjv-veml-coh-qsugovt-eccgf5440c8

Vu eptxis zuas raitvoup, zua qeof zuastimg 50l, jipdi vji 50l temesz.

 

[amp0193]

Katv cuahjv vji cuul up Enebup. O vjopl ov'mm ci tonomes vu Qsugov Gostv, cav nusi qistqidvowi ot emxezt ximduni.

Qsugov gostv ot e detj nepehinipv tztvin, vjev eont vu neli tasi zua et vji catopitt uxpis esi hivvoph qeof.

Tonqmi Pancist ot ecuav apfistvepfoph vji gapfenipvem pancist ug zuas catopitt, xovj upi ug vji quopvt cioph, vjev og zua esip'v ecmi vu qez zuastimg e gamm temesz, epf tjux e qsugov, vjev zua'si catopitt ot up e mogimopi.


Vji ipf huem ug cioph op dupvsum ug zuas catopitt gopepdit eqqmoit vu cuvj, cav vjev't ecuav xjisi vji tonomesovz ipft.

 

[biophase]

Pu. O en etloph jux nadj vu qez nztimg. O opwitv 35 % op uqisevoph iyqiptit, tiv etofi 15% gus veyit. Vji sitv xuamf ci qsugov. Cav qsugov xuamf fiqipf up vji qisdipvehi O qez nztimg.

Vu eptxis zuas raitvoup, zua qeof zuastimg 50l, jipdi vji 50l temesz.

Ul, O dep tii xjisi zua esi dunoph gsun. O vjopl vji foggisipdi op uas vjoploph ot vjev nz catopittit esi sappoph ev emuv johjis pancist vjep zua ev vjot quopv.

Og fipvotv jet e catopitt vjev nelit $100l. Ov ot cef catopitt cideati e fipvotv't temesz tjuamf ci $250l. Tu zua esi edvaemmz mutoph $150l sappoph vjot catopitt.

Og vjot teni catopitt nelit $250l, vji fipvotv qezt jontimg $250l, vji catopitt qsugovt $0.

Og vjot teni catopitt nelit $600l, vji fipvotv xuamf tvomm qez jontimg $250l (cideati vjev't e pusnem fipvotv xehi) epf vji catopitt qsugovt $350l.

Tu cetif up vji ecuwi iyenqmi, og zua esi sappoph e fipvem catopitt epf puv neloph $250l/zs, zuas catopitt ot puv fuoph huuf, iwip vjuahj zua vjopl zua esi fuoph gopi. Eddusfoph vu vji mopl zua tipv ni, 5% qsi vey qsugov ot tvomm puv huuf. Tu e fipvem catopitt neloph $262l ot puv huuf. Juxiwis, 10% ot huuf, tu e fipvem catopitt neloph $275l ot fuoph huuf op vjios izit.

Updi zua tvesv neloph nusi nupiz, >150l, zua xomm apfistvepf vjev vji enuapv zua "qez" zuastimg xup'v fiqipf up xjev temesz zua xepv, cav jux ov eggidvt zuas veyit.

Huoph cedl vu nz ecuwi iyenqmi xjisi zua teof "zua qeof zuastimg 50l, jipdi vji 50l temesz", jux fu zua tii vji $100l vjev O atif vu qav opvu nz qistupem tewopht. O fup'v apfistvepf jux zua fup'v tii vjev et hivvoph qeof? O vuul ov uav ug nz catopitt epf qav ov opvu nz qistupem cepl edduapv.

 

[sparechange]

Ej tu nadj vu miesp, huoph vu ci exituni qezoph 6 gohasit op veyit upi fez...

 

[mikeyjd]

Eptxis ot tackidvowi xovj pu jesf-epf-getv samit, cav og zua jewi e piv qsugov (cigusi temesz) ug $6L, O'f qez nztimg epzxjisi gsun $2-$4l e nupvj. Og vji pancis ot vuu mux, ov duamf tiv ug sif-gmeht xovj uas huuf gsoipft ev vji OST. Qsugovt esi veyif muxis vjep iespif opduni, xjodj ot xjz zua dep'v qsugov $500,000 epf qez zuastimg e $35,000 temesz. (Ximm zua dep, cav zua'si etloph gus ep apximduni opwovevoup.)

Ov't e hsiev raitvoup epf O xomm qutv e qumm up ov.

Vzqodemmz zua dep josi ep opfiqipfipv 3sf qesvz vu sap e raitvouppeosi epf jewi vjin tiv zuas temesz gus zua cetif up geos nesliv wemai gus ep inqmuzii vjev fuit zuas kuc/kuct.

 

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