13 \\ How S Corp Owners Should Pay Themselves: Avoid IRS Trouble with Smart Tax Planning
- Author
- Tiffany Phillips - CPA, Small Business Money Mentor, Financial Expert
- Published
- Wed 07 Dec 2022
- Episode Link
- https://smallbusinessfinance.podbean.com/e/13-how-much-salary-to-pay-yourself-as-a-s-corp-business-owner/
Confused about how much to pay yourself as an S Corp owner? In this episode, we break down the IRS reasonable compensation rules so you can avoid penalties and audits. You’ll learn how to calculate a fair salary, the difference between draws and payroll, and why paying yourself too little can cost you big later. Using a listener’s question as a real-world example, we explain how to decide on your own pay, what factors the IRS looks at (industry, profit, hours worked, location), and why timing your paychecks can be flexible. If you’re growing a side hustle or a small business, this episode gives you actionable cpa advice, tax strategies, and tax planning insights to protect your business and keep your taxes in check.
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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