- Author
- Tiffany Phillips - CPA, Small Business Money Mentor, Financial Expert
- Published
- Thu 06 Jun 2024
- Episode Link
- https://smallbusinessfinance.podbean.com/e/110-paying-yourself-mastering-w2-salaries-and-equity-distributions-for-business-owners/
In this episode, I break down one of the biggest questions business owners face:
“How much should I pay myself in salary, and how much can I take as a distribution?”
We cover:
- What “reasonable compensation” actually means (and how the IRS looks at it)
- Why guessing your salary is risky—and how to calculate it the right way
- The benefits of keeping your salary as low as justifiable to reduce payroll taxes
- How distributions work, when you can take them, and why they aren’t taxed twice
- How to handle cash flow and tax payments using distributions
- The mindset shift needed when moving from employee to owner
If you’re an S-corp owner, stop winging it when it comes to paying yourself. Learn how to protect yourself from IRS scrutiny and optimize your take-home cash without paying unnecessary taxes.
Next Steps:
💰Pay Less in Taxes – Start Here! 💰
☎️ Are you overpaying in taxes every year? Schedule a FREE discovery call to find out!
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