How should you pay yourself when starting a business?

When starting a business in Canada, you can pay yourself through a salary or owner’s draw. For corporations, a salary involves paying yourself as an employee, which requires withholding taxes. With a sole proprietorship or partnership, an owner’s draw allows you to take profits directly from the business. Consider your business structure, cash flow, and tax implications. Initially, it may be wise to reinvest profits to grow your business and ensure its sustainability before taking a significant personal income.