How do I pay myself with minimal tax burden?

Question

I am a small business owner and was wondering how I can pay myself with the least amount going to taxes. I currently take a regular paycheck that is taxed like a normal person. Should I do an owners draw, or are there ways I can be non-taxed for my salary?

Answer 1

That depends entirely upon how your business is legally structured. Without knowing that, it's not possible to answer your question.

Answer 2

If you're self-employed filing a Schedule C as a sole proprietorship, you cannot deduct amounts you pay yourself.

You will always be subject to self-employment taxes on your income.