BizSugar.com › Finance › Paying Yourself as a Sole Proprietor

As a sole proprietor, you and your business are one and the same, and therefore business and personal taxes are filed together. Your net profit is taxed as a whole, whether or not you draw it out or leave it in the business; however, separating accounts and implementing a payment system will help you better understand the financial health of your business. Read on for a look at the function of an owner’s draw and the tax features to consider when paying yourself.