S Corp Payroll Requirements: The Complete Compliance Guide
You formed an S corporation, opened a business bank account, and now you're wondering whether an owner draw counts as your paycheck. It doesn't. If you actively work in the company, you're wearing two hats, shareholder and employee, and the employee hat comes with payroll obligations. The costly mistake isn't usually choosing the wrong payroll […]
What Is Reasonable Compensation and How to Set It Right
You're running payroll, taking owner draws, and telling yourself the salary can wait until next quarter. That's the exact moment the IRS starts caring, because for an S-corp owner, the paycheck isn't just a bookkeeping choice, it's a tax position. If you've been leaning on a casual percentage or a rule you heard from another […]
Understanding the S Corp Tax Rate A Guide for Business Owners
Let's get one of the biggest myths out of the way first: there is no single, fixed S corp tax rate at the federal level. It just doesn't exist. Instead of the business paying its own taxes, an S corp's profits and losses "pass through" directly to you, the owner. What you ultimately pay is […]