I am looking to start my own small business and am confused about the best way to pay myself. I understand from my profit I will have to pay Corporation Tax, but what about tax on my earnings?
Also how much should I budget for accounts and book keeping?
That depends on whether you are a Sole Trader or a Limited Company. If you go Limited (which is usually best) then you pay yourself a small wage but take higher dividends.
The Book keeping will be charged at an hourly rate, so it depends how much paperwork your accountant has to sort out.
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Contact the Small Business Administration and they can give you specific advice based on your business at no cost to you.
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That depends on whether you are a Sole Trader or a Limited Company. If you go Limited (which is usually best) then you pay yourself a small wage but take higher dividends.
The Book keeping will be charged at an hourly rate, so it depends how much paperwork your accountant has to sort out.
References :
Go to H&R block and ask them for a workbook. It has saved my tuckus and it was free because I let them do my taxes too.
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Good Luck
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I go by the 10%, 10%, 80% rule. 10% to the community or charity or if you go to church tithe. 10% to you and 80% toward all and any bills and to invest back into your business or toward other investment. Works for me.
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