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S-Corp Reasonable Compensation Insights
Practical guidance on owner salary, distributions, IRS expectations, and how to document a defensible Reasonable Compensation figure.
- 6 min read
What Is Reasonable Compensation for an S-Corp Owner?
Reasonable compensation is the salary the IRS expects an S-Corp owner-employee to pay themselves for the work they actually do. Here's how it works and why it matters.
Read article → - 6 min read
Why the 60/40 Rule Is Not an IRS Rule
Plenty of S-Corp owners follow a 60% salary / 40% distribution split because someone told them it's safe. The IRS never said that. Here's where the myth came from — and what the IRS actually looks at.
Read article → - 5 min read
How Often Should S-Corp Owners Review Reasonable Compensation?
Setting a reasonable salary once and forgetting about it is almost as risky as never setting one at all. Here's a practical schedule for keeping your number defensible year after year.
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