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How Much Money Should You Take Out of Your Business? | Owner's Draws u0026 Distributions Explained

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Clara CFO Group

What is Months of Cash:    • What is Months of Cash? A measure of ...  

Are you wondering how much money you can take out of your business without jeopardizing its financial health? In this video, we walk you through the critical considerations for determining your owner's draws and distributions. Learn the key factors to ensure your business remains stable while you take home what you need.

In this video you will find:
0:00 Common Questions from Business Owners
0:32 Tools and Tips for Making Decisions
1:06 Changing Video Posting Schedule
2:40 Business Types Covered in This Video
3:05 The Importance of Profit in Owner's Draws
4:49 Calculating Profit and What It Needs to Cover
10:00 Effective Tax Rate and Savings
12:23 When Large Distributions Are Possible
14:00 Annual Distribution Example
15:06 Empowering Business Owners


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Hannah Smolinski is a #CPA and the Founder of Clara CFO Group. Find out more about Clara CFO Group at https://claracfo.com/

Disclaimer: This video is intended for educational purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Clara CFO Group, LLC is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience.

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