13 \\ How S Corp Owners Should Pay Themselves: Avoid IRS Trouble with Smart Tax Planning
SMALL BUSINESS FINANCE – Your Guide to Business Tax Planning & CPA Tax Advice

13 \\ How S Corp Owners Should Pay Themselves: Avoid IRS Trouble with Smart Tax Planning

2022-12-07
Confused about how much to pay yourself as an S Corp owner? In this episode, we break down the IRS reasonable compensation rules so you can avoid penalties and audits. You’ll learn how to calculate a fair salary, the difference between draws and payroll, and why paying yourself too little can cost you big later. Using a listener’s question as a real-world example, we explain how to decide on your own pay, what factors the IRS looks at (industry, profit, hours worked, location), and why timing your paychecks can be flexible. If you...
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