Dividends for small business owners?
I own a small business, S-corporation and I want to pay myself a dividend. Last year my retained earnings (after all bills paid, etc..) were about $20,000. I paid myself $2,000 for a "dividend". Am I allowed to draw money from my business account as needed or not to exceed the retained earnings? Basically I'm just really confused, are there any legal issues with paying yourself dividends at anytime and for any amount? Or is the decision up to me since I'm the President? Also, what are the tax pro's/con's for salary vs. dividends. Thanks!!
What is it like being a small business owner?
Being a small business owner is a lot like being a parent.Why do I say that? Consider the following: - It's often thankless, especially in the beginning. - You do everything, chief, cook & bottle washer. - Everyone looks to you for answers (it's lonely).Now for the upside!Like a parent, an entrepreneur has the great privilege of raising something that will go on to become a great contributor to our society. Small business is the back bone of our neighborhoods, cities and country. Small business owners are solving problems and delivering vital services that we often take for granted.Just like parenthood, small business ownership is not for everyone, the hours are long and vacations are few. However if you love what you are doing and want to make your corner of the world a better place there is no better way, in my mind, to do it than to become an entrepreneur.Find a problem you are passionate about and go for it, you will likely fail and in the failing you will learn, pick yourself back up, and become better for it.Here's to your success!
How many small business owners make more than $1 million income in a year?
I think the biggest problem with small business arguments is the vast difference in size and receipts. They can go anywhere from a struggling mom and pop grocery store to a manufacturing company of up to 1500 employees and $21.5 million in annual receipts.I guess a better question would be, how many small business owners actually make $1 million in income a year?Here is the way the SBA defines small business.SBA defines a small business concern as one that is independently owned and operated, is organized for profit, and is not dominant in its field. Depending on the industry, size standard eligibility is based on the average number of employees for the preceding twelve months or on sales volume averaged over a three-year period. Examples of SBA general size standards include the following:Manufacturing: Maximum number of employees may range from 500 to 1500, depending on the type of product manufactured;Wholesaling: Maximum number of employees may range from 100 to 500 depending on the particular product being provided;Services: Annual receipts may not exceed $2.5 to $21.5 million, depending on the particular service being provided;Retailing: Annual receipts may not exceed $5.0 to $21.0 million, depending on the particular product being provided;General and Heavy Construction: General construction annual receipts may not exceed $13.5 to $17 million, depending on the type of construction;Special Trade Construction: Annual receipts may not exceed $7 million; andAgriculture: Annual receipts may not exceed $0.5 to $9.0 million, depending on the agricultural product.Thank you to Anon user for pointing to the US Census Bureau for statistics, I was scouring the SBA, the IRS and the Bureau of Labor Statistics and couldn't find anything useful.According to the Census Bureauhttp://www.census.gov/econ/small...The vast majority of small businesses have 9 employees or lessIn 2008 there were 27,757,676 total firms.Of these only 21.8% have any employees at all.Of the firms that have employees 78.8% have 9 employees or less.Of the 6,049,655 employer firms in 2007 61.2% had sales receipts of $999,999 or less.As Anon points out much of this money goes back into the business, so the owners would not be making $1million per year.
About how much would a small business owner of a plumbing company make?
I was just wondering about how much annually does a small business owner of a plumbing company make in southern california? Does anyone out there have their own company and if so about how much do you make a year? Is it worth the trouble of starting your own business?
A small business owner visits her bank to ask for a loan.......?
Hi, can anyone explain to me how to find this answer? I've tried so many things and I think I am missing a step or just don't understand.... Here is the full question: A small business owner visits her bank to ask for a loan. The owner states that she can repay a loan at $1,100 per month for the next three years and then $2,200 per month for two years after that. If the bank is charging customers 7.75 percent APR, how much would it be willing to lend the business owner? I posted this question previously, but the answers given I did not quite understand so I am reposting. I was told I could use excel to figure this out but have no idea where to start. Thank you!
As a new small business owner, what are some common things that I can write off in taxes?
Payroll
What is the best college degree for a small business owner?
Any business-oriented degree would be ideal, but there are many, and quite a few granular distinctions even within those. Depending on the type of business, this might include a bachelor’s or master’s in the following:AccountingBusiness AdministrationEntrepreneurshipFinanceLogistics & Supply ChainMarketingProcurementOrganizational ManagementOperationsProject ManagementRetail ManagementTo name a few.This is a fine online piece that goes into the topic on several levels and would be well worth reading:Small Business Owners and Online CollegeBest of luck on your education!