Self Employed - Salary Figures

Question

So I run my own startup and run it as a S corp, and put all my profits back into the company. As I technically don't draw a salary, do I put $0 as my salary when they ask for salary figures, or can I put in the business income.

abhimahna · Answer

Hi startup2017 ,

I believe you should mention what you are earning.

Actually the amount you are earning is what matters and not how and you are using that amount.

Let's say I am earning a profit of $1000. Now, I can mention this as my salary. I should not bother about how I am using this profit.

Mentioning salary= $0 won't look good and it may raise questions.

Good Luck

startup2017 · Answer

Thanks. I am conflicted whether to use profit or income after paying my employees, obviously the first would look multitudes better, as after paying off all my employees the income looks pretty low.

abhimahna · Answer

I think total amount you are receiving should be the revenue of your company and what you are getting in hand should be your income.

You can mention more details on the job description/company details.

Narenn · Answer

Agree with abhimahna . I think you should show your profit as your income. You are also welcome to take expert's opinion on this issue in our weekly MBA chat... https://gmatclub.com/forum/wed-sept-27- ... 49811.html

VeritasPrepDozie · Answer

Agree with the advice above...you will need to make sure you explain this in the actual application form or in an optional essay. Make sure to communicate the venture is early stage and you are re-investing 100% of the revenue/profits back into the company

BrianRobinson80940 · Answer

There are a lot of opportunities to work anywhere in the office and to be self-employed in the mentioned area of people life. So if you are looking for the main activities and advantages of self-employment, you must be ready to get the negative traits of it. For example, if the speech is about the free time, you will not have a lot of it. You will work every your free minute for the use of your future and current business. But there are a lot of positive elements here. You are the owner of your time and only you decide, how much time you will work.

Self Employed - Salary Figures

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