Reasonable Salary
“I took out a loan to fund my S-Corp payroll during a slow season, is it legal to pay myself a reasonable salary using borrowed money?”
For an S-Corp, the source of payroll funding is often less important than whether the compensation is treated consistently and documented properly. Borrowed money may be part of the cash flow picture during a slow season, but the reasonable salary issue usually turns on the owner’s role, the services being performed, and how payroll, loan records, and corporate books are maintained. Lenders, shareholder loans, and the company’s ability to support wages can also affect how the arrangement is viewed. 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.
“How do I know if my S-corp salary is reasonable enough?”
“What is a reasonable salary for me as an S-corp owner?”
“I'm trying to figure out a reasonable salary for my S-corp, how do I tell?”
“As an S-corp owner, how do I figure out a reasonable W-2 salary that the IRS will not challenge during an audit?”
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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