You are making money. But are you actually keeping it?

Too many entrepreneurs I talk to are generating real revenue and still not paying themselves consistently. They are running profitable businesses and their personal finances do not reflect it at all.

Here is what most people do not realize. How you pay yourself depends entirely on how your business is set up. LLC owners and S-Corp owners play by completely different rules. And if you do not know which rules apply to you, you could be leaving thousands of dollars on the table every single year.

That is exactly why I brought Chika Obih on the show. Chika is a CPA with 16 years of experience working with high-achieving women entrepreneurs. In this episode she breaks down how to pay yourself correctly based on your business structure, what the IRS actually requires, and how to make sure your personal finances finally match the business you have built.

Key Topics Discussed

Why your business structure determines how you pay yourself
The difference between owner draws and W-2 salary
What the IRS means by reasonable salary and why it matters
The three-bucket framework for salary, draws, and retained profit
How to pay yourself consistently even when revenue fluctuates
The S-Corp tax savings most business owners are missing

Key Takeaways

Your business structure determines how you pay yourself. Most entrepreneurs find out they have been doing it wrong after the fact. Chika breaks down exactly what the IRS expects from you based on how your business is set up.
There is a three-bucket framework for paying yourself. Getting the balance right between these three buckets could save you thousands in taxes every single year.
Reasonable salary is not a number you get to make up. The IRS has a definition and if you miss it in either direction it will cost you. Chika explains how to find the right number for your industry and location.
There is a right way to pay yourself consistently even when revenue fluctuates. Chika shares the exact approach she gives her clients so they can stop guessing and start paying themselves like a CEO.
Your money check-in routine could be your most powerful income generating activity. Chika shares the weekly and monthly habits that keep her motivated, clear, and consistently in action in her business.

Resources and Links

Download Chika's Free Monthly Money Check-In Guide
Follow Chika on Instagram — @chikaobihcpa
Connect on LinkedIn with Chika
Subscribe to Chika on YouTube

Enjoyed this episode?

If this conversation opened your eyes, share it with a business owner who needs to hear it. Leave a five star rating and a written review so more entrepreneurs can find the show. And come tell me what you think. You can DM me on Instagram @JamilaPayneMBA anytime.

This is the Productive and Paid podcast. Real conversations about entrepreneurship and money.

Until next week, stay productive and get paid.