Free calculator for dance studio owners
How much can a dance studio owner pay themselves?
A studio owner often teaches as well. Your teaching pay and your owner profit are separate. The season makes cash uneven, so set pay from the whole year.
The starting numbers are an example for a dance studio. Replace them with yours.
Three rules for paying yourself from a dance studio
- Set steady pay from yearly profit, after summer is accounted for.
- Leave costume and recital money out of what you count as spare.
- Personal taxes come out of what you take. Ask your accountant how much to set aside.
What changes the answer for a dance studio
Costume fees can make the fall balance look healthy. That cash is already owed to the costume supplier. Take your pay from tuition profit only.
The worked example
In the example, the business keeps $28,000. That covers $14,000 for two payrolls, $8,000 of monthly bills and $6,000 due soon. Steady pay comes to $3,600 a month. Anything above $28,000 in the bank is spare.
A common question
Are costume fees income for a dance studio?
They pass through. You collect them from parents and pay them to the supplier. Keep them visible as their own line so they are not spent twice.
Know what is safe to take, every week
One Page CFO shows the cash above your safe line every Monday, from your QuickBooks, checked by a CFO.