Being an entrepreneur has its perks. You’re your own boss, which means you have all the control. However, sometimes the freedom of being an entrepreneur can be a little tricky. Namely, how do you know how much to pay yourself? Or should you even take a salary at all?
There’s no one-size-fits-all answer, but there are some safe guesses. You probably shouldn’t pay yourself $1 like Facebook CEO Mark Zuckerberg or Snapchat CEO Evan Spiegel. A safer bet is probably somewhere around $70,000, where the national average hovers.
Of course, many factors cause this number to fluctuate. It’s helpful to browse competitor salaries on the SBA Income Statistics Page or on Glassdoor. You’ll also want to understand the two main ways of paying yourself—owner’s draw vs. salary—and explore the tax implications of each. One requires a lot more accounting work than the other.