How do we determine how much money we can take out of our company while we are paying off loans?

min read
Opinions expressed by Entrepreneur contributors are their own.
You need to understand that you will be taxed on profits. Repayment of loans amounts is not a tax deductible expense - only the interest portion is. You should be working closely with a financial advisor and tax consultant to determine the appropriate amounts of money to be drawing from the business and then determining whether it is through payroll or owner draws - they have different tax considerations.
More from Entrepreneur
Our Franchise Advisors will guide you through the entire franchising process, for FREE!
  1. Book a one-on-one session with a Franchise Advisor
  2. Take a survey about your needs & goals
  3. Find your ideal franchise
  4. Learn about that franchise
  5. Meet the franchisor
  6. Receive the best business resources
Discover the franchise that’s right for you by answering some quick questions about
  • Which industry you’re interested in
  • Why you want to buy a franchise
  • What your financial needs are
  • Where you’re located
  • And more
Try a risk-free trial of Entrepreneur’s BIZ PLANNING PLUS powered by LivePlan for 60 days:
  • Get step-by-step guidance for writing your plan
  • Gain inspiration from 500+ sample plans
  • Utilize business and legal templates
  • And much more

Latest on Entrepreneur