How Much Should my Owners Draw Be?

An excellent question asked by all new business owners.  The answer lies in understanding overhead.  Overhead is defined as all administrative, marketing, vehicle, office space, utilities - the basics that it takes to run a business.  This category should never contain a cost of goods sold, for instance something directly related to creating sales such as inventory or payroll. To determine an appropriate draw, look at a span of time 6 months or more on the Profit and Loss - the longer the per...