In my “First things First” post, I talked about the self-employed salary coming from the business operating account in a check paid to you as salary.  The previous post explained that you cannot receive a real estate closing business check. it into your personal account and start spending.  Your business must be structured to pay yourself and anyone who you should employ out of the business account.  Thereby documenting through the financial software you are using, I suggest Quicken or Quick Books, where your business money is spent in order to document dollars spend on tax deductible items, business expenses and salaries.

Assuming that your business is just starting and you are the only employee you must calculate what you need to be paid to meet your personal obligations and run your business.

I hope it is becoming crystal clear why when starting a business it is crucial that you have start up capital to live on until your business starts bringing income.

Visit the IRS page for those who are Self-Employed

Self-Employed Individuals Tax Center