What if an S Corp Cannot Pay Reasonable Compensation to a Shareholder-Employee?
Running an S Corporation comes with its unique set of challenges, one of which is ensuring thatshareholder-employees receive reasonable compensation. But what happens if your S Corp cannotafford to pay this reasonable compensation? This situation can be tricky, but understanding the IRSguidelines and potential solutions can help you navigate it effectively. Understanding the IRS RequirementsThe […]
Reasonable Compensation To A Shareholder-Employee By An S-Corp
When running an S Corporation, one of the critical issues that often arises is determining the reasonable compensation for shareholder-employees. This is not just a matter of fairness but also a significant tax compliance issue. The IRS mandates that S Corporations pay reasonable compensation to shareholder-employees for the services they provide before making non-wage distributions. […]
5 Common Tax Mistakes Small Businesses Make and How to Avoid Them
As a small business owner, navigating the world of taxes can be overwhelming. Whether you’re managing payroll, expenses, or deductions, it’s easy to make mistakes that can cost your business time and money. At TaxGent, we understand the importance of accurate tax preparation services and helping you avoid common pitfalls. Below, we break down five […]