S Corp Distributions: How Much Should I Pay Myself?

Determine your reasonable salary and distributions with RCReports here:
startupwise.com/rcreports/
In this video, I go over S Corp distributions and how to find the right balance between salary and distributions to maximize your tax benefits. I explain what an S Corp is, the importance of paying yourself a reasonable salary, how the IRS determines a reasonable salary, and the tax implications of distributions.
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Be sure to watch this video all the way through as I cover how to determine a reasonable salary using industry standards and how to avoid IRS scrutiny. A common strategy is to follow a 50/50 or 60/40 split, though this can vary based on your industry and role. I highly recommend to consult with a knowledgeable accountant to ensure your S Corp distribution strategy is compliant and tax-efficient.
Additionally, I mention some practical strategies you can implement such as regularly reviewing and adjusting your salary, keeping documentation to justify your decisions, and considering your business's cash flow needs when deciding on distributions.
If you want to learn more about business and S Corp formation, be sure to check out my other videos:
Business Formation Playlist:
• How to Set Up an S Cor...
How to Set Up Payroll for your S Corp 2024 (Step-By-Step Guide):
• How to Set Up Payroll ...
S Corp Reasonable Salary: How Much Payroll Should I Pay Myself?:
• S Corp Reasonable Sala...
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-Sam
#SCorp #Salary #Business
Timeline:
0:00 - Intro
0:27 - What Is An S Corp?
1:07 - IRS's Definition Of A Reasonable Salary
2:15 - Balancing Salary and Distributions for Maximum Savings and Legal Compliance
3:24 - RCReports Walkthrough
4:57 - Important Points For Distributions
5:56 - IRS Legal Views
6:24 - How To Determine Your Salary
7:11 - Practical Strategies To Manage Your S Corps
7:44 - Outro
Disclaimer: Some of the links above may be affiliate links, which means that if you click on them, I may receive a small commission. The commission is paid by the retailers at no cost to you, and this helps to support our channel and keep our videos free. Thank you! All info from our videos is compiled from online sources and our own experience, and we encourage you to do your own due diligence. We appreciate your viewership!
In addition, we are not a financial advisor. StartupWise does not provide tax, legal, or accounting advice. The ideas presented in this video are for entertainment purposes only. Please do your own due diligence before making any financial decisions.

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Hope you guys enjoy the video and get value from it!
Determine your reasonable salary and distributions with RCReports here:
startupwise.com/rcreports/
Our favorite business must-haves:
💳 Best business credit cards: milevalue.com/best-credit-cards/?aff=suw
🏦 Novo (best business bank): startupwise.com/novo
🖥 Best AI website builder ($3/month using code STARTUPWISE): hostinger.com/startupwise
⚙ Northwest (best $39 LLC formation service): startupwise.com/northwestLLC
💰 Payroll with Gusto (get a $100 giftcard!): startupwise.com/gusto
👨💼 Best overseas staffing agency (save 80% on payroll): paired.so/startupwise