How Much Does The Owner Of A Remodeling Company Pay Himself?

A successful remodeling company can support a total owner compensation of 10 of gross sales, regardless of the number of owners. For businesses with less than four or five years of experience, an average of 8 of their total sales should be paid as the construction business owner salary. For example, if a company sells, builds, and collects an annual volume of $350,000, the owner’s salary should be around $10,000.

On average, owners of small home remodeling businesses earn between $50,000 and $80,000 per year. Custom builders typically work on smaller margins of 15 to 18 for overhead and profit on new homes, while remodeling contractors charge higher rates. The estimated total pay for a construction company owner is $119,650 per year, with an average salary of $100,444 per year.

Remodeling contractors earn an average of $24 per hour and $50,264 per year. Entry-level workers earn $30,000 a year, while higher earners can reach up to $20,000. Contractor fees for building a house range from $18,000 to $83,000, or 10 to 20 of the total construction budget. A general base salary for a remodeling contractor ranges from $50,870 to $68,160, with an average base salary of $58,869.

In small companies, owners can earn more than 10 if they work productively in the field as carpenters. Contracting businesses aim to earn an average minimum of 15 to 20 on their total billings. As the director of a construction business in a limited company structure, it is essential to pay construction employees a decent wage, whether through salary, dividends, or other means.