A sole proprietor is entitled to a salary for his work in the business?

Question

True or False?

Answer 1

Yes you can

Answer 2

YOU betcha, as long as the business

is netting enough [not grossing] to pay a draw!!

Answer 3

As a sole proprietor all "profits" are considered salary and are taxable. It is more a matter of semantics.

They can pay them selves a salary, but they will pay taxes on all "profits"

A draw is to partners or owners of corporations or partnerships.

Answer 4

True-ish. The owner's pay is called a draw.