How much YOU should pay yourself as a business owner 😀
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- Опубліковано 20 лип 2024
- This is how much you should pay yourself as a business owner. Just enough to save, invest and grow your business.
Like this video, if you want a longer-form version!
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Hi! My name is Evan, I'm a business owner and entrepreneur that loves to help previous versions of myself. I started an accelerator that has helped thousands of people start their businesses. To learn more about me and what I can do to help you, check out vanader.com or click the link above!
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Hi! my name is Evan and I'm super stoked you want to learn more about me!
I show people how to build their businesses. I learn a skill, test it with my own companies and share it!
I got my start by selling CDs at 13 years old. I’ve worked as a fry cook, I’ve mowed lawns, built go-peds, managed restaurants, sold mortgages, worked in Hollywood, and sat at a desk. I’ve cold-called, done graphic design, pounded pavement, traded crypto, and worked on an ambulance.
I finally settled down and devoted my life to becoming a firefighter in my early 20’s. It took me 5 years of training, fire academies, and paramedic school to finally land that job.
I spent 8 years of my life answering 911 calls. Now I get to pursue my real passion, which is building businesses and educating.
My first successful company is called Scorch Marker.
I was building a commemorative plaque for the fire department in my woodshop and desperately wanted to burn our motto “together in, together out” into the wood. So I pulled out my wood-burning tool, plugged it into the wall, and screwed the whole thing up!
But my wife and I had found another way. We created a chemical solution that reacts with heat. We were inspired by UA-cam creators! You apply the liquid to wood, apply heat, and the wood burns only where you drew! Pretty cool right? We invented the world’s first wood-burning marker - Scorch Marker.
Little did we know that this was the beginning of something big. We agreed to spend $500 of our savings to see if we could turn the idea into a product. 2 years later and we got into retail, became a bestseller on Amazon, created jobs, and made a lot of mistakes.
It’s the mistakes that are important. Those are the valuable, teachable moments that doers get to enjoy and learn from. They make you stronger.
Building, maintaining, scaling, running, or managing a business is not easy. But it can be done!
That's why I'm here. To teach what I've learned so you don't have to make the same mistakes that I did!
Can't wait to hear from you!
Evan
Vanader.com
"Don't buy dumb shit" got me rolling
😂😂😂😂I did not expect that
Evan, as usual Job well done. You honestly have a gift, what would normally take other 20 mins you break down in under 2.
You won’t initially be taxed on the owners draw but when you file your taxes you will have to claim it as taxable income. So you will have to pay federal and state income tax
So I salary better than owners draw
@@seiscincocerosalary will require payroll tax on business side plus taxable income on personal side. No matter how you do it the government will double tax you
I'm thankful for your channel. Not only are you educational, entertaining, and exceptional, but you chose a KH music track and that alone tells me you know about the light and darkness of business. Thank you for all you do 😊
Great information, explained very well! Remember, focus on that work life balance as much as you are focused on the business growth. You CAN have it all.🎉
Kingdom hearts theme song, that was a good game. When life was simple
Yup I miss those days
I was just about to comment😂😂
I hope that is per month cause no one can live on 10k per year unless its a part time company.
I understand the owner’s draw is not taxed but how much money should be put aside for taxes on this illustration?
Kingdom hearts and business?? This is the rarest intersection I’ve seen all month
Owners draw is all I needed to know thanks 🙏
No problem 👍
It’s the pen hitting the paper for me… I watched it fives times just for that reason alone…. Lol
Dat kingdom hearts beat lol
The nostalgia…. Haha
Yea I love Dearly Beloved
Ok time to get back to watching his UA-cam shorts
THANK YOU THANK YOU THANK YOU. You are a blessing
This definitely helped me understand a little more! Like the Kingdoms Hearts start up music in the background 🗝️ need to use that! Lol
I love the dark ending! Gotta love the twist in genre teaching to harsh reality. Nice!
When you say you are not going to get tax in owners draws a second time, can you explain that?
Succinct and friendly. Thank you.
I’ve literally been looking for someone to write it out like this! Thank you! Just missing the calculation for taxes..?
I noticed that…
I normally hold back 20- 25% of the profit until end of the year to ensure taxes are covered.
@@todmiddleton3638taxes are insane
It depends but the suggestion of 20 to 25% is a good start.
Deposit it into a separate account to help from spending it.
I've been looking for this. More specifically a video broken down monthly. And taxes for the company. I'm so confused but this helps. I don't want to do this wrong
Anthony. I feel that. I’m glad this helps. Dm me on IG if you need more help
This is helpful because I need to set this up for the SCorp
Straight to the point great job ty
Good luck with a business that offers a 30% margin. Also, don’t forget the taxes including the self employment tax (goodbye 40% of earnings).
So reinvest 66% and draw 33% of total nett profit.
Better is stop buying shit you don’t need right away or that you can buy aftermarket with no functionality loss
Been looking for a solution like this.
DBDS is always the best advice however 33% of the profit as a personal income can lead to a bad habit that leads to a quick downfall / bankruptcy - in other words pay yourself $1 like muxelon does - and invest everything else back into your company buying out competitors which are also called as your business model enhancers as quick as you can - and that is how you will end up a billionaire -
But we got bills to pay?
Like the dearly beloved mix in the background 😘👌
Thank you bro
Very well done.
If you don’t have that much money, you can just remove the key and put a % instead then it will fit with any amount of sales you get
Came for Business help.
Got a surprised with a sudden wave of Kingdom hearts Nostalgia instead 🤣
I think you forgot tax expense on that 10k lol
Came here to ask about that. Maybe it's included in the $70k
Wait you have to pay taxes on that too? even though you already subtract it from your business profit?
I love the kingdom hearts background music
You also need to live within your means and be happy. Stay away from debt.
Don't buy stuff you don't need and stop wasting money on luxury items.
Don't keep up with jonses.
THANK YOU!!! :)
You're welcome!
What if I wanted to take a portion to re invest in a new bussiness?
Both of those rules are very hard and I'm trying to follow them everyday
Hey, for real though, this is legit.
I must say after seeing this I’m curious to learn a little more about your business 🤔 Let’s connect.
So you take this out of business account? I’m new to this whole thing.
I love that pen 🖊️ 😅 when can I get myself one of those?
I love it!!! Number 1 secret, don’t buy dumb shit😂😂😂😂
Thanks for watching india
How would you do it if you have a 1099 contractor on your team?
Do refrigerators still come in boxes?
That 30k is not just to reinvest. You have taxes, retained earnings, owners draw.
Does reinvesting include employees?
Is there a certain day you pay yourself? Cause obviously its in your business bank acc. Is there a day where you have to transfer that fund or ?
Sales and expensive Got me dead 💀ain’t no way
This is for the year. Can you break it down? Monthly or bi-weekly?
you could use this same model monthly just take away a 0
$300 a month on living expenses how would anyone live off of that ?
@@benlangman_2727 this is when having a spouse or domestic partner comes in handy - that way you wont need to worry about making ends meet as much.
If I'm doing an owner's draw do I have to be registered as an LLC or can I be a sole proprietor?
So, are you saying 10% of the revenue, or 1/3rd of the profits?
So essentially 1/3 of profits = owner’s draw and 2/3 off profits = reinvest in business
Do you pay taxes on just the net, before you do an owners dray
I recently started my LLC . Plumbing company.
I am married and want to basically take care of all bills( 4500 / month ) while her check pays our lifestyle/entertainment
I’ve been using Zelle to do this. My question is come tax time for myself. Am I claiming this money? If so is it taxed? I’m not taking any more than what is exactly needed monthly so I’m worried I’ll owe on my personal taxes for the money I’ve referred over the year
If you're asking this question, you should probably consult an accountant. If your company consists of one member, you, it is considered a sole proprietorship, and you will be taxed as an individual, not as a separate entity. A partnership for example, could be taxed as an S-Corp, where you're essentially on the payroll of your own company, where you and the company are taxed separately. As a sole proprietor, you will have to pay "self-employment tax", which is social security and Medicare, since you don't have an employer withholding it from your paycheck. So in short, you must claim all income, then deduct only business related expenses from that income, and what ever is left is taxable. Regular living expenses are not deductible. Not sure how joint filling would work if married. Consult an accountant. It's well worth the money.
owners draws are not taxable?
You start with damn near 50 % after taxes 😂
So is the tax part of the expenses of the business
Monthly correct?
The Big Guy get 10% right off the top.
I'd say it's more than that
Is this per month?
🤪🤪Kingdom Hearts 🛐🛐
First you need to miraculously start off with $70,000? Then you need to somehow manage to recieve a 43% profit return every month? Good idea, thanks for the advice...
How about a realistic situation where you're starting a business with 10k or less and getting a normal return of 15-20%. You get 2k in profit... now u reinvest $600 in your business and you'd have to live off like $1000 a month using this strategy, unrealistic... This information becomes much more useless when applied practically. You have to realize most people are poor, and people that have 70k on deck don't even need this kind of information.
When you started a small business you would need a job to support you
Me actually collecting all the dumb shit to get rid of it.
Lol. We’ve all been there brother
This consider a draw or salary ?
Completely illegal to pay yourself solely by dividend. You should be paying yourself a market-competitive wage for the roles & responsibilities you hold.
This might have worked in 2020
☑️💯
if the person is sayin "reinvest 20k" then they don't know the business
i dont know shit trust me
Then why don’t one need to add themselves on payroll
You can only be on payroll of your own company when you are an Scorp or Ccorp
Don't buy dumb shit lesson learned , like expensive cars , bike and dumb watches
Nice pin my guy
Ominikun you no get mind for the fracas that you’re just starting.
Boost your audio
You got it
10k per month I hope. Cause 10k per year and ur in big trouble.
"you're not gonna get taxed" yeah that's not going to be accurate in every country and tax jurisdiction on the planet. Don't believe that for a second you won't get taxed.
Simple run down. You’re totally forgetting about taxes on the profits from the business friendo.
In other words, don't buy things from temu
So is the $100k revenue post tax?
pre tax
@@Vanaderthank you
@@Vanaderhow much should be put aside for taxes in your illustration?
Dont forget you have to pay taxes
Make sure you pay taxes.
I’M MATURE…I DON’T NEED IT!!
I’M MATURE…I DON’T NEED IT!!
I’M MATURE…I DON’T NEED IT!!
I’M MATURE…I DON’T NEED IT!!
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