Tag Archives: S-Corp

Reasonable Compensation

C-Corporations. If you pay yourself too much payroll, the IRS may claim that part of the payments should have been dividends. If the auditor reclassifies, it will lead to double taxation. S-Corporations. If you pay yourself too little payroll, the IRS may claim that part of the other payments to yourself should not have been […]

S-Corp Owner Salaries

I keep hearing that the IRS is continuing to crack down on S-Corp owners that take too low of salaries. For a brief background, as the owner of an S-Corp, you can (should) take a salary for your services. However, one of the benefits of having your small business taxed as an S-Corp (as opposed […]