In the early years, a simple set up and taking out money by way of an owner’s draw is probably most appropriate. Things may well remain like this if you are happy with this arrangement. However, if you become even more entrepreneurial and want to grow, it may be that you change the business structure from a sole proprietorship to an LLC or a corporation. This will then allow you to take a salary and to top this up through taking out profits by way of a dividend.  There is a lot to consider when looking at how to pay yourself from your business and, importantly, it’s a decision that needs to be reviewed on a regular basis as both your circumstances and business change. The simpler sole proprietorship structure is most likely the best option in the early days, but this may need to change as your business changes or grows.