Reasonable Salary
“I am the sole employee of my S-Corp, what exact percentage of my total gross revenue should go toward my W-2 salary?”
For a sole-owner S-Corp, the salary question is usually driven by the nature of the work, the level of responsibility, the company’s revenue and profit pattern, and what comparable businesses pay for similar services. There is not a single exact percentage that fits every case, because reasonable compensation often depends on how much of the income comes from your labor versus capital, whether the business has employees or contractors, and how much time is spent on day-to-day operations. In many cases, the analysis also looks at industry norms, prior pay history, and how consistently the business generates gross revenue. A CPA who reads your specifics can usually tell you, in plain English, where this lands.
In your 90-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.
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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