WHAT SHOULD YOU PAY YOURSELF AS A LANDSCAPING BUSINESS OWNER??
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- Опубліковано 25 сер 2024
- What Should You Pay Yourself as A Landscaping Business Owner? In small business finance. I've done a ton of research and asked hundreds of questions to qualified professionals. And at the end of the day. As long as you pay your state & federal taxes, Have have proven legitimate write offs (that are actual business expenses), you can pay yourself whatever you want. As long as most of it is in the form of payroll. Whatever distributions you take will get taxed at a higher rate as a self employment tax.
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DISCLAIMERS:
Do your own research and get a CPA. This video is for entertainment purposes only and does not constitute as advice.
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What Should You Pay Yourself as A Landscaping Business Owner? 🤔 I've done a ton of research and asked several qualified professionals.
1.) Of course you should be on payroll
2.) Of course you should have separate business and personal accounts
3.) Of course you should only have legitimate proven write offs.
But when it comes down to the line. Whether you classify yourself as an employee of your business, self-employed, or a little bit of both.
As long as you pay your fair share of state and federal taxes. (When you're running a tiny service business) You can pay yourself whatever, whenever you want.
Now this is the kind of info that’s valuable to me.
Started part time lawn care this year and started to really throw in some landscaping lately ( just booked a $1.8k job for this weekend whoop whoop!) But my target billable hr is $60 for myself or highly skilled worker and $45 for labor help. Payroll for $60 is $20 and $45 is $15. Under the table right now until I pay a bunch of equipment off and get right side up with my investor (family member) and building up enough clientele to make it worth the jump to full time. Thank you soooooooooo much Keith, you really have been the key to a great start in my venture.
Out of curiousity what job did you book for 1.8k?
@@warmkaril1 It is about a 2 acre fairly well landscaped yard that has overgrown for 2 to 3 years. Client is older and wants it trimmed up and presentable again. A lot of elevating trees, clearing brush around bushes and trees. Barns, outbuildings and sheds cleared of brush grown up in it. Not used to estimating so I made sure I could cover 4 of us working on it and still profit for 2 days and hopes of doing just one day. And if I can come in under the quote then I will and pass the savings to the client.
@@billydungey5710 why pass it to them? That’s your $.
@@billydungey5710 why pass the savings on? you quoted, they agreed, doesn't matter how long it took or how fast you do it. i quote is a contract
So good! I booked a 2500 painting job and I'm hoping to get it done in 2-3 days. Fun fun
Every video brings me closer to my path! Keith is a REAL teacher💯🧠
Great job explaining!!
aww man! I wanted the longer video! I've always struggled to understand these things but that just made so much sense and seems so easy..
S Corp here and it’s worked well for us. Thanks for doing this video. It’s very helpful
I agree with you 100% Keith...your videos are awesome, keep going! I'm watching from Brazil!
Thank you for the motivation sir I’m from the Bahamas and you inspire me so much sir
I appreciate that. 💪
I just found your channel and I'm so grateful for these videos, my son-in-law just opened a new tree service business... just got his contractors license and I am doing the books. I've never done this all by myself before and of course I want him to succeed... his success is my daughter's success and mine as well so I'm gonna read the books you recommended and I'm going to continue to watch your videos thank you.
I really really appreciate your videos. You’re like an extra set of eyes reminding me to have enough profit for take home. We’re all going to have to retire someday. I am Detroit Steeplejack, so you are nearby. Thanks for looking out for all of us out here.
dude you are the man in my humble opinion you are the godfather of landscaping. This kind of video is so helpful for where I am at in my business. To be honest I haven't been great with my record keeping I still have all of the receipts but everything else is not kept up with. Thank you for all that you do.
You're sup welcome. Thanks Michael.
Bro same, I say we buckle down and grab this bull by the horns 🤘
This is why you should build your business from the ground up and your life style as well
Thanks for the great info K. My accountant likes me to pay some federal taxes quarterly so it’s not a big hit at the end of the year. Been doing this for the past couple years. Makes a big difference between the ears if you know what I mean. Thanks for all your help Keith 😃. Still swamped in Battle Creek 😅😅😅. Keep em coming dawg 😀😀
Very nice. Estimated quarterly taxes. We do that too.
Hey, thanks for the vid, this is solid foundational info.
I use the Profit First method, which is a game changer. I haven't yet made a boat load of money, but even still, it forces me to set aside money so I don't get screwed by the tax man.
I have one business bank account, which has multiple sub-accounts so any deposits get sorted (manually) immediately.
I can't imagine running my business any other way, especially if I have large(er) installs with big deposits to manage.
I eventually want to incorporate, so I appreciate the info on that in this vid.
Income Tax (Canada) is the worst; it takes the most money (30%). The other sub-accounts like OPEX, GST, Payroll, etc. take less of a percentage.
This system is relatively malleable.
I charge $80/hour minimum and I do mostly installations. Once that $80/hr runs through the system mentioned above I pay myself roughly half. So, I charge $80 and pocket $40. If I charge $90 I make $45 and so on.
I recently learned that two colleagues of mine charge out their crews all at the same rate (approximately $80-$90/hour). I've always been unsure what to charge out employees at, but they say keeping everyone at the same rate simplifies things and most clients don't care.
Live IN the business as much as possible.
I have yet to truthfully "Pay" myself anything. Still trying to grow and not really enough overhead to do more than pay the bills and have a few bucks left over for needed things
Great info. Thank you for sharing
Are you kidding?! How do you know? I’m in that stage of my business 😄. Thank you so much for your help man!
Thanks bro you're welcome.
Could you do this again in English please? 🤣 but seriously, great info man. Going full time in 2022. Theres SO much more to it than just getting out there and mowing (or whatever else you do). I think a good CPA is a must to alleviate the preventable headache and hypertension diagnoses.
So good. Thank you sir.
Lefty i had ro sub and thanks for advice I got some plans in the making .
I'm an LLC but file taxes as a S Corp. There is that option. So far it's great. You get the protection as a limited liability company and the advantage of filing taxes as a S Corp
That's interesting. Good to know!
I have mine set up the same way
Awesome video 🔥💯
My buddy actually won the mower from last year there.
This is dope!
Thanks Keith 💯
Great information
I went on the books in 2020, had to show a lot in 2021 to get a mortgage. Now I’m trying to figure out now how to split everything. I currently have only my business checking. I’m going to start doing this, paying myself enough to cover my bills so I don’t have to worry about taxes at the end, by spending most of my profit
Now that I have a 900$ / month MT-100 Bobcat
Bill I don’t get paid 😂 most goes back into business for now still after going full time 3 months ago 👍
Nice hat there you got someone you recommend, Custom Ink has a minimum and kinda pricey
3 months in and you spend 30k?
@@MyGUNZ123 he said he went full time in his business 3 months ago
I drove 3rd shift and also ran my landscaping business for the last 7 years. I quit driving job 3 mo. ago
Good video!
Good info, Sir! Thx
I’ve been keeping it all
That’s not good
Imm
Thanks Kalfas !
Quick books cost money. So does adp. I do all my stuff. I keep history of EVERYTHING
I branded everything I use
I think a good rule of thumb is you should be shooting to make a minimum of $40 per hour of your time if you run your own business REGARDLESS of what trade/field you are in.
That’s pretty low considering most people in average job make over 20 bucks an hour even more in the trades . I’m not comparing it to minimum wage . So $40 bucks an hour is low in my opinion to own a business and deal with everything that it takes .
@@hhprogressiveconstruction1140 right more like around at least $100
I was just asking myself these very questions….
But I’ve completely separated myself from the business. $450 a week pays the bills.
But I don't want to pay anybody a salary unless they are Office staff... I still want them to be efficient by paying them p4p hourly
I have just been transferring $600 through my bank app to my business checking account
Nice
same. im a single member LLC i pay my self 700$ a wk just transfer it from my B.C to my P.C owners draw. my cpa handles my books, payroll, taxes etc...I like it. very easy he calls me up once a month to talk numbers and then end of qrt n tells me how much to make sure is in the bus ck bc taxes will be debiting out of it for taxes that following day. so easy just go out and grind!!
So basically keep everything in business account and take only business expense out of it? 3 years and I only have personal
Go to Cali with me Keith
Fking love you man
Exactly the video I needed to see. I'm in my first year and started my business as an LLC. I've been meaning to hire a CPA and figure out my numbers and a have been thinking of running taxes as S-Corp but didn't understand the benefits of doing that. Thanks for the insight Keith!
For sure. You're welcome sir
Good morning kieth !
Good morning
@@keith-kalfas just wanna say I appreciate all that you've done and showed me .. have a great day kalfas
I’m confused lol my brother and Myself just officially got an LLC for our property maintenance company in New Jersey, that we are both owner/operator. How do we determine what we pay ourselves?
You going to the gie expo this year? I'll be there
Im I month in my business. Should I wait a year before switching from a LLC to S corp?
I’m just getting myself on weekly salary. $450 a week lol
I don't need to work.
Bernie Sanders promised us free stuff
As a landscape company owner does it make sense to pay 16k for 5 people within 12days?
I had a contractor charge me 16k for his 5 people that worked for 12days 🥴
You got a steal. Guy charged less than $35 per man hour
How did you learn to do all the landscaping stuff?
From working at like 20 landscaping companies before starting my business.
Im on CS so I would be paying myself $10/h LOL
👌
Do you have crews in which work without you being on site ? And how many do you have?
Hey toro if you ever been interested in expanding your landscaping company by obtaining additional capitol please contact me I promise to not waste your time the last company I funded received 150k in just 2 days no credit check
Thank you for this video, @keith-kalfas!
Do you have to have workman compensation for yourself when you are by yourself and paying salary yourself?
Exempt.
@@keith-kalfas thank you
Hello Keith new question about same topic. I received Labor Law Compliance Notice and I am planing to get salary my self soon should I just pay this compliance up front?
So what’s better LLC or Scorp ?
LLC taxed as an SCORP
@@keith-kalfas Is that hard to do?
I have been running llc and waiting until end of year to pay . How much you recommend saving if business gets one monthly check.
Thanks
How do you feel about rolling business spare cash into BTC?
1 If you all have not seen a documentary called.... It's worse than you think... By relations with Jesus Christ ministries... I suggest you do.... all Praise and glory to the most high Jesus Christ
Awesome
you should pretend you live in a big house with big wife and big car and you should say to your self this is not enough money
Whatup doe