Q&A: How does a business owner move from making a wage, to making passive income?

Question by Jordan p: How does a business owner move from making a wage, to making passive income?
I was wondering about the legal and/or accounting aspects of when a business owner wants to stop pulling a wage from their company, instead make passive income. Does anyone know the benifits or pitfalls of doing this.

Best answer:

Answer by vlad
Legal aspect depends on whether you are sole trader or any type of public enterprise.
Accounting aspect – when you stop pulling your wage your company costs go down, your profit goes up and so does your income tax.
You will have no social securities and depending on your age it will hurt your pension volume if you pull your wage out.

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