SMALL BUSINESS FINANCE – Your Guide to Business Tax Planning & CPA Tax Advice
110 \\ How to Pay Yourself Right: W2 Salaries vs. Equity Distributions for S-Corp Owners
Jun 6, 2024 · 19 min · Episode 10 · 14.8 MB
0:00-19:41
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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!
📧 Contact Me --> hello@phillipsbusinessgroup.com
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💰Pay Less in Taxes – Start Here! 💰
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