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Self Employed - Salary Figures

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Self Employed - Salary Figures [#permalink]

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New post 24 Sep 2017, 23:56
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.

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Re: Self Employed - Salary Figures [#permalink]

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New post 25 Sep 2017, 00:00
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 :)
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New post 25 Sep 2017, 00:05
abhimahna wrote:
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 :)


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.

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Self Employed - Salary Figures [#permalink]

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New post 25 Sep 2017, 00:09
startup2017 wrote:
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.


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.
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Re: Self Employed - Salary Figures [#permalink]

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New post 25 Sep 2017, 00:47
startup2017 wrote:
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.


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
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New post 28 Sep 2017, 19:09
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
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New post 29 Sep 2017, 05:24
It's really interesting..
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Re: Self Employed - Salary Figures   [#permalink] 29 Sep 2017, 05:24
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