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Whose money is left after paying the expenses?

Quick lesson1 min read

To compare structures, separate the business's cash, the cost of paying whoever does the work and the money the owner finally receives. A balance inside a company may have a different destination from money already received personally.

An example with numbers

A company collects $80,000 and pays $50,000 of operating expenses. $30,000 is left before pay, taxes and other obligations. You cannot work out the owner's personal income from that figure alone.

Try it with your numbers

Set up columns for the business and the owner. Note pay, distributions, taxes and retained money according to the verified rules of your jurisdiction.

This calculator is on its way. In the meantime, you can do the calculation on paper or in a spreadsheet.

Example figures for learning purposes. They are not a recommendation and do not replace professional advice.

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