E249: Reasonable Compensation for S-Corps – Busting Common Myths
February 26, 2025
Reasonable compensation is one of the most misunderstood and debated topics for S-Corporation (S-Corp) owners. Despite its importance, misconceptions continue to circulate, often leading to IRS challenges or costly mistakes. Let’s break down what reasonable compensation is, why it matters, and bust some of the most common myths.
Reasonable Compensation for S-Corps – Busting Common Myths
[Prefer to read? You can find an article version of this episode here: Reasonable Compensation for S-Corps – Busting Common Myths]
Reasonable compensation is one of the most misunderstood and debated topics for S-Corporation (S-Corp) owners. Despite its importance, misconceptions continue to circulate, often leading to IRS challenges or costly mistakes. Let’s break down what reasonable compensation is, why it matters, and bust some of the most common myths.
Intro/outtro music credit: eccentric - I Can Show You [Argofox Release] by Argofox