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Sure. But if I roll all revenues into the business where are the money to pay my personal rent and groceries as the owner?
by wodenokoto 4y ago
Sure. But if I roll all revenues into the business where are the money to pay my personal rent and groceries as the owner?
- dmurray 4y agoYou pay yourself a salary. That's the business investing revenue back into its employees. And yes, you'll pay income tax on that, but that may only be a small part of the value you've created. Or you sell some shares, or borrow against your equity. Perhaps you can roll it forward indefinitely and you're in a jurisdiction where your heirs get favorable tax treatment by inheriting the business.
- biorach 4y agoYou pay yourself a salary. The whole setup probably requires operating at a much larger scale than that of a sole trader or small family business.
- deleted 4y ago[deleted]