S-Corp Reasonable Salary
“Could my S-corp salary be considered unreasonable?”
Whether an S-corp salary is viewed as unreasonable often depends on the owner’s role, the services actually performed, and how the compensation compares with similar positions in the same industry and location. Payroll records, officer duties, profitability, and the balance between wages and distributions can also matter. In many cases, the IRS looks at the full facts and circumstances rather than a single formula. If the salary is far below what someone would normally pay for comparable work, that can raise questions, but the surrounding business facts usually shape the analysis. A short conversation with a CPA can sort out what applies to your specific numbers.
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.
“Is my S-corp salary too low?”
“I pay myself $25,000 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?”
“I pay myself $50,000 from my S-corp, is that going to be a problem?”
“I pay myself $100,000 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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