Navigating S Corp compliance can be tricky, especially when it comes to determining the right salary. The IRS mandates a reasonable salary, yet the specifics remain elusive. In this episode, I guide you through a seven-step process that we employ with our clients to establish a fair and compliant salary. Avoid the pitfalls of paying too little and find clarity in this ambiguous aspect of S Corp regulations.
What you'll hear in this episode:
04:28 Defining salary based on business involvement and role.
07:29 Analyze salary to maintain business cash flow.
If you like this episode, check out:
How to Stop Feeling Unprepared For Tax Time
Harness the Benefits of an Accountable Plan in Your Business
Minimizing Tax Season Anxiety with Three Simple Steps
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The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.