Optimize Your Pay: 7 Key Factors for Setting Practice Owners' Compensation

Questions? Thoughts? Send a Text to The Optometry Money Podcast! We'll answer your question on the show.As a private optometry practice owner, one of the most essential yet misunderstood financial decisions is figuring out how much to pay yourself. In this episode, Evon Mendrin dives into seven critical factors to consider when setting your own compensation from your optometry practice—especially if you're taxed as an S Corporation. Whether you're just getting started or running a thriving, established practice, this episode will help you balance tax strategy, financial planning, and long-term wealth-building with clarity and confidence.You’ll learn:How income draws differ based on how your practice is taxed (sole proprietor, partnership, or S-corp)Why paying yourself “too little” can backfire with the IRSHow your wage affects your Social Security benefits, QBI deduction, and retirement plan contributionsThe surprising ways your compensation impacts practice valuations and financial planningHow to align your income with your lifestyle and financial goalsResources Mentioned:Independent Strong Article: How to Pay Yourself – Key Factors for Setting Your Owner CompensationIRS Guidance on Reasonable Compensation for S CorpsRelated Episodes:The Optometry Money Podcast Ep 51: An Optometrist’s Guide to the Qualified Business Income DeductionThe Optometry Money Podcast Ep. 49: An Optometrist’s Guide to Business EntitiesStay Connected:Click here to Subscribe to the Eyes On The Money Newsletter for weekly financial insights tailored specifically to optometrists.Have Questions? CLICK HERE to schedule a short introductory callThe Optometry Money Podcast is dedicated to helping optometrists make better decisions around their money, careers, and practices. The show is hosted by Evon Mendrin, CFP®, CSLP®, owner of Optometry Wealth Advisors, a financial planning firm just for optometrists nationwide.