Family Business? Taking Money Out: A Simplified Guide

June 17th, 2024

Running a family business is a team effort, you're the heart and soul of the operation. But when it comes to paying yourself, things can get confusing faster than a toddler with a box of crayons.

Just taking cash out here and there might seem easy, but it can actually hurt your business in the long run. Imagine your business is a family piggy bank. You want to take out some money for yourself (because you deserve it!), but you also need to make sure there's enough left over for bills and to keep the business growing.

There are two main ways to take money out that are legal and easy to understand: Salary and Dividends. Here's a breakdown of each:

Salary Power!

Profit Party! (Dividends)

Pension Power


By planning how you take money out, you're making sure your family business thrives and you get to enjoy the rewards of your hard work. Now that's something the whole family can celebrate!