Beating the August Heat: Prepping the Fall & Winter Greenhouse

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August in Alabama is notoriously hot, but if you want a thriving fall and winter harvest, right now is exactly when you need to start getting your hands dirty. Having a greenhouse is a huge advantage for extending the growing season, so I am rolling up my sleeves this weekend to get the fall crop preparation underway. Here is a look at what is going into the dirt this weekend, what is on the schedule for later this fall, and the long game for spring. 🌱 What I’m Planting This Weekend The planting window is perfectly timed right now, so these are the priority seeds going into the setup: Baby Broccoli: I just picked up these seeds, and they are going straight into the dirt! The window for broccoli closes by mid-August, and it is well-suited for direct seeding into the soil rather than using transplants. Spinach: The window also closes by mid-August. Because spinach has shallow roots, these seeds are going straight into the vertical stackable planters. Leaf Lettuce: Perfect for plantin...
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Do I Need to Pay Myself a Salary as a Business Owner?

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πŸ’Ό Do I Need to Pay Myself a Salary as a Business Owner?

One of the most common questions solo entrepreneurs ask once their business starts generating consistent income is: "Should I pay myself a salary?" The answer depends on your business structure—and choosing the right approach can impact both your tax liability and legal compliance.

πŸ‘€ If You're a Sole Proprietor or Single-Member LLC

Good news: You don’t need to pay yourself a formal salary.

In these structures, the IRS treats you and your business as the same entity. This means:

  • You take an owner’s draw, not a salary.

  • All profits flow through to your personal tax return via Schedule C.

  • You're not considered an employee, so no payroll taxes or W-2s are involved.

But remember: You’re still responsible for self-employment tax (which covers Social Security and Medicare), so setting aside about 25–30% of profits for taxes is a smart move.

🏒 If You're an S Corporation

Here’s where things change.

The IRS requires you to pay yourself a “reasonable salary” if you actively work in your business. That salary must be:

  • Comparable to what you'd pay someone else to do your job.

  • Paid through payroll, with proper withholding for income and payroll taxes.

  • Reported via Form W-2 at year’s end.

Why it matters: You can still take additional profits as distributions, which are not subject to self-employment tax. This structure can save thousands in taxes—but only if you're following the rules and documenting everything properly.

🏒 What About a C Corporation?

If you’ve chosen a C Corp, the IRS sees the business as a separate entity. You must:

  • Pay yourself a salary if you work in the business.

  • Withhold and pay payroll taxes just like any other employee.

Unlike an S Corp, all profits retained in the business are taxed at the corporate level, and distributions (dividends) are taxed again on your personal return.

πŸ’‘ Quick Recap

StructureSalary Required?How You Pay Yourself
Sole Prop❌ NoOwner’s Draw
Single-Member LLC❌ NoOwner’s Draw
S Corporation✅ YesW-2 Salary + Distributions
C Corporation✅ YesW-2 Salary

✏️ Final Thoughts

Paying yourself isn’t just about taking money out of the business—it’s about staying compliant, minimizing tax, and setting your business up for long-term success. If you're unsure what qualifies as a "reasonable salary" or how to run payroll, a CPA or tax advisor can help tailor the right plan for you.

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