Are You Paying Yourself Reasonably? IRS Rules for C Corp and S Corp Owner Reasonable Compensation
If you own a C corporation or S corporation, the salary you pay yourself matters more than you might think. The IRS scrutinizes owner compensation, and getting it wrong can lead to disallowed deductions, reclassified payments, penalties, back taxes, and interest. Determining what the IRS considers “reasonable compensation” is critical for corporate business owners. By …
