Manna

"Where’s my paycheck on my P&L??"

The answer depends on your business structure:

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🔹 Sole Proprietor / Single-Member LLC

You don’t take a paycheck like employees do.

You take what's called an owner’s draw – this does not appear on the Profit & Loss (P&L) statement because it's considered a distribution of profits, not a business expense.

Your “pay” comes out of the equity section of your balance sheet.

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🔹 Partnership

Similar to sole proprietors, partners take owner draws.

Again, this is not on the P&L, it’s recorded on the balance sheet under partner equity accounts.

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🔹 S Corporation

As a shareholder-employee, you must pay yourself a reasonable salary through payroll.

This salary does appear on the P&L as a wage expense.

You can also take additional distributions, which do not show on the P&L.

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🔹 C Corporation

You’re treated like a regular employee.

Your salary is on the P&L as a wage expense.

Dividends (if any) are not on the P&L.

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In short:

If you don’t see your "paycheck" on your P&L, it's probably because you're taking owner's draws, not wages.

Only actual wages paid via payroll will show up as an expense on the P&L.

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