Hey guys, I could use your guidance and direction for how I should be saving and spending money as I run and grow my business.
As I get more sales through my business, what percentages should I be saving for taxes, paying myself, paying debt, and maintaining and growing my business?
I have an LLC. My first goal is to start earning $10-20k a month, then scale up from there. I already have paying clients, and was recently paid for a lot of contract work I did last month.
I'm working on kicking things into high gear with things like new prices, new services, better customer support, outsourcing work to handle more projects, offering tons of value, and offering services that will have high demand.
As I do this, I worry about what this will mean. A substantial change in income will put my husband and I in a different tax bracket. So how do I figure out what percentage I need to save for tax? Should I save 40% for taxes?
I think the general rule of thumb was something like ~33% for taxes, ~33% to reinvest in the business, and ~33% to pay yourself.
I have debt, so I have to pay that as well, so I'm not sure how much I should allocate to that and what I should prioritize going forward. I want to do this right and not repeat my past mistakes.
Any pointers, tips, or strategies you can give me are greatly appreciated.
If you also can recommend a free accounting class or set of classes I should take, that would also be helpful and appreciated.
Thanks in advance ☺️
As I get more sales through my business, what percentages should I be saving for taxes, paying myself, paying debt, and maintaining and growing my business?
I have an LLC. My first goal is to start earning $10-20k a month, then scale up from there. I already have paying clients, and was recently paid for a lot of contract work I did last month.
I'm working on kicking things into high gear with things like new prices, new services, better customer support, outsourcing work to handle more projects, offering tons of value, and offering services that will have high demand.
As I do this, I worry about what this will mean. A substantial change in income will put my husband and I in a different tax bracket. So how do I figure out what percentage I need to save for tax? Should I save 40% for taxes?
I think the general rule of thumb was something like ~33% for taxes, ~33% to reinvest in the business, and ~33% to pay yourself.
I have debt, so I have to pay that as well, so I'm not sure how much I should allocate to that and what I should prioritize going forward. I want to do this right and not repeat my past mistakes.
Any pointers, tips, or strategies you can give me are greatly appreciated.
If you also can recommend a free accounting class or set of classes I should take, that would also be helpful and appreciated.
Thanks in advance ☺️
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