Fear of failure and a lack of support or delegation can lead business owners to work more than their employees. Various surveys over the years have found that most business owners work more than 40 hours a week. When a traditional salary doesn’t match their ever-changing job responsibilities, many seek a more flexible option. Owner’s draws, also known as “personal draws” or “draws,” allow business owners to withdraw money as needed and as profit allows.
A draw may seem like a superior option over a salary. But is it always the best solution? What are the tax implications? Keep reading to determine if owner’s draws are the best fit for your business.
Dispatches From The Front 