Do you watch SharkTank and notice...

[Jimmy L]

I was watching some episodes and a lot of entrepreneurs don't pay themselves a salary and don't have a job. They're living off their 401K or mortgaged their home. Some are making 1 million in sales and net about 150K or more. WTF are they not paying themselves salaries!

I'm sure most people on here are not bringing home 100K net plus a year and they pay themselves a salary. Anybody?

 

[spectrejoe]

dodging them IRS

 

[illuminateme]

why would you want to pay yourself and government steals 40% when you can just spend it the same and call it a business expense?

 

[Jimmy L]

why would you want to pay yourself and government steals 40% when you can just spend it the same and call it a business expense?

So you're saying to break even at the end of the year? What happens when you have to show income to rent, get a mortgage etc.? I know plenty of people making under 100K net online doing well while paying themselves.

 

[FormerBoxer]

So you're saying to break even at the end of the year? What happens when you have to show income to rent, get a mortgage etc.? I know plenty of people making under 100K net online doing well while paying themselves.

If your business breaks even that's fine for the 1st couple of years. However, if you do net, it is good to show it to get a mortgage and show banks in the future. You can still give yourself a salary if you net under 100K!

 

[illuminateme]

So you're saying to break even at the end of the year? What happens when you have to show income to rent, get a mortgage etc.? I know plenty of people making under 100K net online doing well while paying themselves.

If you're in full time business, the only valid reason to pay yourself is if you want to borrow from the bank (pay yourself enough to get enough credit for your loan). You can pay yourself the no tax or the lowest tax bracket for shits and giggles... some pay their family at the lowest bracket to spread out the liability... but yeah, unless you LOVE what your government is doing with your money... i say pay them LAST with whichever way that's legal. That's how the truly rich does it.

 

[Jimmy L]

If you're in full time business, the only valid reason to pay yourself is if you want to borrow from the bank (pay yourself enough to get enough credit for your loan). You can pay yourself the no tax or the lowest tax bracket for shits and giggles... some pay their family at the lowest bracket to spread out the liability... but yeah, unless you LOVE what your government is doing with your money... i say pay them LAST with whichever way that's legal. That's how the truly rich does it.

If someone is making million plus gross and 100K net... would that be a good salary living in the US? I had an accountant but he sucked and I didn't bother. I plan to grow my business to 100K net Silly question I know!

 

[FormerBoxer]

If someone is making million plus gross and 100K net... would that be a good salary living in the US? I had an accountant but he sucked and I didn't bother. I plan to grow my business to 100K net Silly question I know!

Are you kidding? If you're making 100K net in the US self employed that is a good salary.

 

[illuminateme]

If someone is making million plus gross and 100K net... would that be a good salary living in the US? I had an accountant but he sucked and I didn't bother. I plan to grow my business to 100K net Silly question I know!

"In the September 2014 Census Bureau report on income and poverty in the U.S., the median household income in America across all jobs was $51,939" 100k net would be excellent, it's about the same here in canada. similar tax rules, same crooked taxmen

 

[DunDidIt2X]

why would you want to pay yourself and government steals 40% when you can just spend it the same and call it a business expense?

In the US its only 21% now

 

[illuminateme]

In the US its only 21% now

i'm no accountant, but last time i checked you guys have different tax brackets based on level of income...

 

[illuminateme]

Federal Tax Brackets: 2017 tax brackets (for taxes due in April 17, 2018)
Tax rate Single Head of household
10% Up to $9,325 Up to $13,350
15% $9,326 to $37,950 $13,351 to $50,800
25% $37,951 to $91,900 $50,801 to $131,200
28% $91,901 to $191,650 $131,201 to $212,500
33% $191,651 to $416,700 $212,501 to $416,700
35% $416,701 to $418,400 $416,701 to $444,550
39.6% $418,401 or more $444,551 or more
Tax rate Married filing jointly or qualifying widow Married filing separately
10% Up to $18,650 Up to $9,325
15% $18,651 to $75,900 $9,326 to $37,950
25% $75,901 to $153,100 $37,951 to $76,550
28% $153,101 to $233,350 $76,551 to $116,675
33% $233,351 to $416,700 $116,676 to $208,350
35% $416,701 to $470,700 $208,351 to $235,350
39.6% $470,701 or more $235,351 or more

In the US its only 21% now

you need to either make more or push it over to business expense

 

[DunDidIt2X]

i'm no accountant, but last time i checked you guys have different tax brackets based on level of income...

Federal Tax Brackets: 2017 tax brackets (for taxes due in April 17, 2018)
Tax rate Single Head of household
10% Up to $9,325 Up to $13,350
15% $9,326 to $37,950 $13,351 to $50,800
25% $37,951 to $91,900 $50,801 to $131,200
28% $91,901 to $191,650 $131,201 to $212,500
33% $191,651 to $416,700 $212,501 to $416,700
35% $416,701 to $418,400 $416,701 to $444,550
39.6% $418,401 or more $444,551 or more
Tax rate Married filing jointly or qualifying widow Married filing separately
10% Up to $18,650 Up to $9,325
15% $18,651 to $75,900 $9,326 to $37,950
25% $75,901 to $153,100 $37,951 to $76,550
28% $153,101 to $233,350 $76,551 to $116,675
33% $233,351 to $416,700 $116,676 to $208,350
35% $416,701 to $470,700 $208,351 to $235,350
39.6% $470,701 or more $235,351 or more

Yeah, now its been reformed this past friday with the recent Tax Reform Bill, which also switched to a territoriality rule instead of international rule- meaning, only income generated from within the US is taxable. Income generated from out of country is not taxable.

 

[MaxTucker]

they possible pay themselves by yearly bonus based on profit, or they are re-investing everything they make back into the company and they have enough set aside to live on

 

[FormerBoxer]

Some of my buddies that make 100k a year gross, don’t understand my online businesses. My buddies are not bringing home 100k net after they pay taxes.

Would you rather make 100k gross at a 9-5 job or make 100k net and pay yourself a salary being your own boss?

 

[natedogg]

I was watching some episodes and a lot of entrepreneurs don't pay themselves a salary and don't have a job. They're living off their 401K or mortgaged their home. Some are making 1 million in sales and net about 150K or more. WTF are they not paying themselves salaries!

I'm sure most people on here are not bringing home 100K net plus a year and they pay themselves a salary. Anybody?

Net earnings is an important number because it is used for business reporting and taxes.

 

[Sythix]

Investing it back into their business. The first few years is not when you start cutting yourself $100k a year. You must eat top ramen and sleep 4 hours a night. Live like a king a few years later.

In a nutshell.

 

[Jimmy L]

Investing it back into their business. The first few years is not when you start cutting yourself $100k a year. You must eat top ramen and sleep 4 hours a night. Live like a king a few years later.

In a nutshell.

Can someone give a guesstimate if I was to make 20K net a week (100K a year). I'm married, have 1 kid, and live in the US what would my take home be weekly being self employed.

 

[Paranoid Android]

I was watching some episodes and a lot of entrepreneurs don't pay themselves a salary and don't have a job. They're living off their 401K or mortgaged their home. Some are making 1 million in sales and net about 150K or more. WTF are they not paying themselves salaries!

I'm sure most people on here are not bringing home 100K net plus a year and they pay themselves a salary. Anybody?

yeah they might not be paying themselves, but I'm sure their fuel costs and lunches would be coming out of their businesses, and their mortgages are probably paid off already. If they are running their businesses from their homes, they can claim their power bills from the company too.

And even if they are not paying themselves anything, they aren't going to be doing that forever, at some point they are going to want to collect back payments, and that would probably be after the sharks invest and the company becomes profitable.

On shark tank you only get to see what happens on the carpet, they never show you the agreements they sign, the due diligence process, or just how many of the handshake deals made on screen actually become deals on paper. Robert only talks about Tipsy Elves and Kevin his photo frame business. With the number of handshake deals they have done on screen over the past 9 seasons, they should be talking about more and not just one or 2.

 

[DunDidIt2X]

20K net a week (100K a year).

20k a week is more than a million a year. Im taking it you meant 2k a week 100k a year your tax liability will be about 30% for 2017. 2018 will be different though. It will be a lot less. Of course you need to also consider your state taxes too (if they have them).