S-Corp Reasonable Salary
“What's a 'reasonable salary' for my S-corp so I don't get flagged?”
A reasonable salary for an S-corp often depends on the work being performed, the owner’s role in the business, and what similar businesses pay for comparable services. Factors such as time spent on day-to-day operations, the company’s revenue and profitability, and whether the owner is doing specialized or managerial work can all shape the analysis. The IRS generally looks at the facts and circumstances rather than a single formula, so the answer can vary based on industry norms, compensation history, and the balance between wages and distributions. Walking the details through with a CPA is the fastest way to know what truly applies here.
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 figure out a reasonable salary for my S-corp?”
“How do I know if my S-corp salary is reasonable?”
“How do I avoid issues with my S-corp salary?”
“How do I know if my S-corp salary is reasonable enough?”
“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?”
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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