Determining reasonable compensation is a crucial step for any S-Corporation owner. Not only does it help protect your business from potential IRS audits, but it also ensures you’re optimizing your tax strategy without overpaying on payroll taxes. This guide and video will walk you through the process of setting reasonable compensation, so you can maintain compliance and maximize tax efficiency.
What You’ll Learn:
- Why Reasonable Compensation Matters: Understand the IRS guidelines and avoid common audit flags.
- Three Proven Methods: Learn the Cost, Market, and Income Approaches to determining fair compensation.
- Documentation Best Practices: Get tips on how to defend your compensation strategy and avoid costly mistakes.
This video provides a concise overview of key strategies and real-world examples, helping you apply what you'll learn in the playbook.
