Business Owners - How much on average do you make a year

[Alwayslearningelec]

I understand this maybe personal and completely respect those not wanting to answer. Just curious as to what some owners make who have their own companies.

 

[roger]

You need to specify the size of the company, your question is kind of like "what car is suitable for you"? A two to three man company is not going to pay the owner as much as the owner of a 1200 man company.

Roger

 

[electrofelon]

What if someone makes under 50k, they don't get to vote? I make well under 50k (one man show), but live in a rural low cost area. Also I am Very good with my corporate structure so I get to keep nearly everything I make. So I agree such numbers are kinda meaningless. I'd take what I make over someone making 200k in a high cost to live area and paying lots of taxes out of that.

 

[petersonra]

I feel excluded because I do not own a business.

 

[Greenboy]

This should be a percentage base question. Comparing revenue, and operating expense. When you quote a project, you mark up (arbitrarily speaking) 10% overhead and 5% profit - depending on the market, this can fluctuate, or business decision. Hoping to yield a 6-10% at the bottom line, or maybe even more if your business operates efficiently. This is in theory!

Regarding ownership,It all depends the size of your company, and region. Do you pay yourself salary, which would be part overhead? If your company does well at the end of the fiscal year, bonus yourself with a reward. It also depends what your role is as a business owner. Bottom line is, it is about the bottom line of the company to stay in business. You don't want to overpay employees(Including yourself), and out of business next year.

While you gain feedback, I am interested to learn what Estimators should be making? Sr. Estimators?

 

[ptonsparky]

I used to make enough, but I don't now. It is the advantage of working for yourself and not putting in enough chargeable hours to justify much of anything.

 

[ramsy]

I understand this maybe personal and completely respect those not wanting to answer. Just curious as to what some owners make who have their own companies.

Neither compensation nor NET income reporting is standardized between CPA’s given the same figures. The only standard is W2 wages.

There are recent news reports of corporations legally reporting the same NET income as a tax loss, and as a profit on loan applications. For sole proprietors, IRS form 1040 Schedule-C simplifies expenses, if not using depreciation schedules typical of corporations.

While US tax law equally enforces filing income-tax returns, the only enforcement of payroll taxes is with W2 employees. Municipalities fight each other over employers with large payrolls. Payrolls are revenue for governments, and for the captains of industry, payrolls are leverage against regulation.

From Chrysler to Wall Street, when government refuses a bailout it is historically punished by mass layoffs, killing payroll-tax revenue and organized labor at the same time.

Weather its captain of industry, or captain of a small ship, they are not metrological standards for book keeping, or reporting.

They know more about their vehicle, gadgets, and biggest jobs, than reliability of hired CPA’s; and neither risk more than a slap on the wrist if agreeing to correct any incompetence.

 

[Hv&Lv]

I feel excluded because I do not own a business.

Kinda agree here...
I have my license in my “business” name, but don’t do enough work to make the list.

I also agree with Roger on the structure of the question. It’s real open ended.

some business owners are paid on a W-2, some on owners draw, some on distribution payments.
depends on the business structure. Also on employees. Like he said, the owner that has 1200 men (that’s a big operation) will make at the top of the survey. One man show may not make the survey.

its like asking me how much I make.

you want W-2 numbers or loaded cost to my company?
They are two numbers that aren’t anywhere close with clothing allowances, insurance, 401k, life insurance, and pension plan bundled in with my salary.

 

[kwired]

Small operators have to pay their own "benefits" but can deduct those as business expenses in many cases. This might make the "taxable income" look different compared to someone that is paid a W-2 wage though they got relatively similar overall compensation. Difference is the W-2 wage earner's employer got to take the deductions for the benefits they provided.