I don't understand the payroll expense and determining your monthly demands

What they mean by payroll expense is that if they are running their business, even if it is just the two of them, they will want to be getting some sort of paycheck. Rather than just dipping into the company money whenever they please, they will set themselves a set salary which will be $2500 every month. By paying both of them that salary they will have to account for $5000 of payroll expenses when they do their bookkeeping.

When you are starting out a business it is hard to determine what your expenses will be. I notice you are just linking from the first video in the series there will be a lot of information regarding these types of questions in the upcoming lessons. However as a brief answer i can tell you that a great way to figure these monthly demands would be to develop a business plan. Even if it is just a few jots on a blank sheet of paper you should be able to break down what sort of activities you will be conducting on a monthly basis as a business; such as renting an office, buying supplies, paying salary, paying for utilities. With these sources of cost listed out, you can then associate at least a ballpark figure next to each and total them up, this will give you at least an idea of what sort of expenditures you can expect.

Like I said though these videos will cover a lot of information about this so best bet bis to keep at them and you will be surprised how much more knowledge you take away.