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    • CommentAuthorcrawford
    • CommentTimeJan 30th 2010
     
    if you start a business with you and your wife running it - should you pay yourself and your wife a salary each month or wait and see what profits are available each month - or take drqws when you need money?
    • CommentAuthorArcSine
    • CommentTimeJan 31st 2010
     
    The correct answer for this one is very much case-specific. For example...

    If the biz's cash flows are sufficiently stable and predictable, then having a fixed, recurring salary has certain advantages to you and your wife WRT planning your household budget and expenditures.

    On the other hand, you mention "starting" a business, and start-ups are famous for ravenous appetites for day-to-day working capital. That would argue in favor of just taking draws when you need them (if your personal situation allows for that) and thus leaving as much of the profits as possible in the biz for working capital.

    Of course, you could also meet unexpected working capital needs with short-term loans from you back to the business.

    You get the idea. There's no one-size-fits-all answer to your question. Let the circumstances and common sense dictate your strategy. And revisit the thinking periodically....what's best this year might not be optimal next year, and so on.
  1.  
    I agree with you Arcsine you done a nice and precise job! Good work



 

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