Reasonable Compensation: The S-Corp Rule That Catches Long Island Business Owners Off Guard
Of all the questions I find from S-Corp owners, the one that generates the most pushback isn't about deductions or filing deadlines. It's about their own paycheck. Specifically, it's the moment I must explain that the IRS has an opinion about how much you're allowed to pay yourself, and that opinion isn't optional. The appeal of an S-Corp election is well known profits distributed to the owner...
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