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Posts Tagged ‘S-Corporation shareholder wages’

For those of you with S-Corporations, now is the time of year to look at your wage for the year-to-date as well as start the planning for 2009.  A “reasonable wage” needs to be paid to more than 2% shareholders in S-Corporation, and there is still time to make changes without incurring payroll tax penalties.
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In talking with non-incorporated small business owners that are not clients of our firm, I often ask why they have not formed an S-Corporation for their business.  A common response I have been hearing is that their accountant or CPA told them that they had not reached the “breakeven point” for incorporating.  Some have even [...]

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