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Solved

Withdrawing money from business checking account

Forum|Forum|3 years ago
September 28, 2022
1 reply
0 views

How do I withdraw earnings in my business account to my personal checking account. I rarely take a salary. Is there a limit to how much I can withdraw for personal use?

Best answer by Laura_CPA

Thank you for answering that question. In your case, you would not be able to pay yourself a salary, but you can take owner's draws from your business to your personal account for your personal expenses. The limit? You can take up to 100% of your profits and equity, but you have to be careful you leave enough money for the operations of the business.

Hope this helps answer your question.

Cheers,

Laura

Hope you are doing well. If I may ask, what type of entity is your business? Sole proprietor, Partnership, Corporation Regular or C, Limited Liability Company?

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linda820pmAuthor

LLC. I am an independent contractor working from home.

Laura_CPAAnswer

Thank you for answering that question. In your case, you would not be able to pay yourself a salary, but you can take owner's draws from your business to your personal account for your personal expenses. The limit? You can take up to 100% of your profits and equity, but you have to be careful you leave enough money for the operations of the business.

Hope this helps answer your question.

Cheers,

Laura

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"