There’s no easy way to determine reasonable compensation. Here are some steps you can take to make it more likely that the compensation you earn will be considered “reasonable.”
Tag: compensation
Compensation vs. Dividends: Determining Reasonable Compensation
There’s a tax advantage to taking money out of a C corporation as compensation rather than as dividends because a corporation can deduct the salaries and bonuses that it pays executives.
Contemplating Compensation Structure
The ideal solution to both compensation structure and pay raises will vary based on factors such as the size of the business and typical compensation levels of its industry.