S-Corp Compensation & Entity Selection

Get Clarity on Structure, Salary, and Staying Compliant

Choosing the right business structure—and understanding how to pay yourself properly—can be confusing. I offer straightforward, personalized support to help you make the best decisions for your business and stay in the IRS’s good graces. Whether you’re just starting out or restructuring, I’m here to guide you.

Why It Matters

S-Corp compensation and entity selection can affect your taxes, compliance, and long-term goals.

  • Choosing the wrong entity can cost you in unnecessary taxes or limit your flexibility
  • Paying yourself incorrectly as an S-Corp owner can trigger IRS penalties
  • The right setup can lead to real tax savings and peace of mind

My Services

I use trusted tools and real-world insights to help you navigate two of the biggest decisions small business owners face:

S-Corp Reasonable Compensation Analysis

Using specialized software and industry benchmarks, I’ll help you determine what’s considered a fair, IRS-compliant salary based on your role, revenue, and industry.

Entity Selection Guidance

Wondering whether to remain a Sole Proprietor, become an LLC, or elect S-Corp status? I’ll walk you through the pros, cons, and tax implications of each so you can make an informed decision.

Support for New and Existing Businesses

Whether you’re setting up a new business or re-evaluating your current structure, I’ll help you choose the right path for your goals and tax situation.

QuickBooks-Ready Setup

Once your structure and compensation plan are in place, I’ll help you sync everything with your QuickBooks system so it all runs smoothly.

Frequently Asked Questions

  • What happens if I pay myself the wrong amount as an S-Corp owner?

    The IRS may reclassify distributions as wages, leading to back taxes, penalties, and interest. That’s why a reasonable compensation analysis is so important.

  • Can I switch from an LLC to an S-Corp?

    Yes, and it might be a great move depending on your income and goals. I can help you understand the tax benefits and requirements of making the switch.

  • What’s considered “reasonable compensation”?

    It depends on your role in the business, the services you provide, your industry, and what others in similar roles earn. I use software and current data to determine a fair and defensible salary.

  • Is this only for new businesses?

    Nope! Even established businesses benefit from a review—especially if your income or business structure has changed.

  • Do you file the paperwork for entity changes?

    I don’t file legal or tax documents, but I’ll guide you through the process and help you gather everything you need for your CPA or legal team.