S-Corp Reasonable Salary
“Can my S-corp salary get me in trouble with the IRS?”
An S-corp salary can draw IRS attention when it appears out of step with the owner’s actual work, the company’s profitability, or the way similar businesses compensate people for comparable duties. In practice, the IRS often looks at whether the salary reflects the services performed, how distributions are handled, and what records support the compensation decision. Factors like job responsibilities, time spent in the business, and industry norms can all matter. The answer often depends on the full facts, especially when owner-pay is split between wages and distributions. A CPA who reads your specifics can usually tell you, in plain English, where this lands.
In your 30-minute session, the KGOB advisor handling it will:
- Read your exact situation and tell you, in plain English, what’s actually going on.
- Lay out your options and the trade-offs — no jargon, no judgment.
- Give you a clear next step you can act on, whether that’s with us or on your own.
“I’m worried about my S-corp salary, is it a problem?”
“I take a salary from my S-corp, could that trigger a reasonable salary issue?”
“Is my S-corp salary going to be an issue if I pay myself this much?”
“I pay myself $25,000 from my S-corp, is that going to be a problem?”
“I pay myself $50,000 from my S-corp, is that going to be a problem?”
“I pay myself $75,000 from my S-corp, is that going to be a problem?”
This page is a prompt to start a conversation, not tax or legal advice, and states no tax-law specifics as fact. A consult session does not by itself create an ongoing engagement. We do not promise specific outcomes or savings. Kohari Gonzalez Oneyear & Brown PLLC — Charlotte, NC.
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