Reasonable Salary
“My S-Corp operates at a severe loss this current year, can I temporarily suspend my reasonable salary without getting penalized by the state?”
An S-Corp that is running at a severe loss can raise questions about how officer compensation is viewed, especially when the business has limited cash flow and the owner is still performing services. The answer often depends on the level of work being done, whether the shareholder is still active in the company, and how the state and payroll records reflect compensation changes. Losses alone do not always determine the treatment, and state payroll or employment rules can add another layer. Documentation, consistency, and the facts of the business usually matter a great deal in these situations. Working through the specifics with a CPA is the cleanest way to land on the right move.
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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