S Corp Reasonable Salary - An In-Depth Guide

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For Businesses that are profitable, and the goal is to take the profit out of the company in a tax efficient manner, S-corp is a great tax designation to elect for your business, potentially saving thousands depending on the level of profitability of your business.

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All S corp owners must pay themselves a 'reasonable salary' in order to compensate themselves, but what does the IRS consider reasonable compensation? This video guide will explain how to determine your S corp reasonable compensation and how to pay yourself as an S corp.

TIMESTAMPS
0:00 Intro
0:53 1. What is an S Corp?
1:20 2. How Owners Get Paid
2:23 3. What is a Reasonable Salary?
3:21 4. Exceptions
4:09 5. How to Calculate Your Salary
5:09 6. Resources
6:13 7. The 60/40 Rules
6:51 8. Salary Taxes
8:31 9. Example Salaries
8:31 10. Is an S Corp Right for Me?

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