buksoPaying yourself as an owner
Not tax advice. General bookkeeping information only, checked against the official sources linked below (Canada Revenue Agency, IRS, provincial governments and Justice Laws) on Oct 17, 2026. Rules change; check with your accountant before you file.
Canada
A sole proprietor's draws are not a business expense; you are taxed on the business profit. A corporation can pay you salary (with payroll deductions) or dividends.
Official source: canada.ca
United States
A sole proprietor's draws are not deductible and you pay self-employment tax on the profit. Only employees are paid wages.
Official source: irs.gov