Things Tax Preparers Say: “S-Corp Reasonable Comp is 25% of Your Gross Income”
S-corporation reasonable compensation is one of the most misunderstood concepts in tax law. And that’s saying something, considering how mind-numbing U.S. tax laws are.
If You’re a Sole Proprietor, Think Hard Before Forming an S-Corp
I’m encountering more and more sole proprietors who want to form S-corps so they can save on taxes. It’s a good strategy — if you know what you’re getting into. The problem I encounter with these clients is: almost all of them engage in mystical thinking about the wonders of S-corps.
S-Corporation Compensation Revisted
Further discussion of S-corporation compensation considerations.
