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 Publication 5412 G SP 5 Internal Revenue Service 2021

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how does the IRS determine a reasonable compensation for S corporation owners a million dooll question how does the IRS determine a reasonable uh compensation for an S corporation owner and if you have an S corporation you're probably thinking hey how much do I pay myself I don't really know so IRS says look you've got to pay yourself a reasonable compensation whatever it is that a person in your role would be doing now let's take for example an attorney an attorney doesn't necessarily do 100% of legal work they do 50% maybe legal work the other 20% paralal work another 20% probably marketing for the business another 5% probably administrative and another 5% probably managing something so if you break all of that down as because now you're not getting paid 100% as an attorney you're getting paid as a 50% attorney 20% for marketing 20% for pargal if you calculate all all of that that could give you a good reasonable compensation fo

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