The salary requirement is the most ambiguous part of S Corp compliance. The IRS says you have to pay yourself a reasonable salary but they don't say how much that is or how to figure it out! But pay too little, and you'll find yourself in trouble.

 

I'm walking you through the seven-step process we use with clients to determine their reasonable salary.

 

* Related episodes:

196. How to Handle Suspicious Tax Pros

201. How to Deduct Medical Costs and Self-Employed Health Insurance

204. Live Q&A: Will Anyone Actually Buy My Offer?

 

* Find everything you need at www.keepwhatyouearn.com! https://www.keepwhatyouearn.com/

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* See how much you can save with an S Corp: https://www.keepwhatyouearn.com/keep-what-you-earn-s-corp-calculator

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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.