S-Corp Reasonable Salary
“How do I determine my S-corp reasonable salary and distributions?”
An S-corp owner’s reasonable salary and distribution mix often depends on the work performed, the level of responsibility, and what similar businesses pay for comparable services. Payroll history, the company’s profitability, and how much of the income is tied to the owner’s personal labor versus return on investment can also shape the analysis. In many cases, the supporting records matter as much as the final split, including job duties, time spent, compensation studies, and how distributions are handled during the year. Because the facts can vary, the answer is usually more about documenting a defensible position than applying one fixed formula. Going through your records with a CPA usually surfaces the answer in under an hour.
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.
“How should I pay myself in my S-corp salary and distributions?”
“How do I figure out reasonable salary versus distributions in my S-corp?”
“What should my S-corp salary and distribution mix look like?”
“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?”
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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