Because certain businesses (corporations, mainly s corps) require you to pay owners salaries as they are not self employed..
Also try living on one paycheck at the start of jan. Until the end of the year
ahhh I see, I didn’t know that was the case with S-corps. I just assumed if you own it entirely, you would get all the profits either way.
For instance
if your business nets $100,000 in profit and you pay yourself nothing... you would still make $100,000.
If your business net $100,000 in profit and you pay yourself $50,000 of that and get the other $50,000 in profit from being the owner... you would still make $100,000.
The only difference is you would pay social security and medicare taxes on the salary.