August 2020 - IncSight

What is a reasonable compensation for an S Corporation owner?

by Mike Jesowshek, CPA | Aug 12, 2020 | Accounting, Banking, IRS, Operations, Payroll, Taxes

In this article we are going to talk about the reasonable compensation aspect of electing S Corporation status. That is the $1,000 question. Unfortunately the IRS does not give us clear guidance in this area but they are able to point us in a direction at least. The...