There's a thread in here somewhere about director's Emoluments and paying salary vs dividend but I didn't quite understand it so am starting a new one.
So my rental business is starting to generate money and I want to keep track of what the company owes me for the services I provide the company.
I am a director, shareholder and trustee of the trust that holds shares in this company and I provide services i.e. collecting rentals, management, acting real estate agent etc.
I'd like to charge the company 5% for closing deals, i.e. facilitating lease agreements and property developments. I then want to charge 5%/month management fee for any unit that is rented. So instead of drawing a fixed salary I only get paid when something is generating money.
Since the business is starting up, I can't draw remuneration just yet as I'm ploughing the money back into furnishing the units, paying agents etc...but I'd like to keep track and withdraw the cash when we break even after month 4-5...
So how do I go about this?
Do I invoice the company and register my remuneration as an expense? Do I draw up a contract and employ myself and include PAYE UIF SDL?