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.”
How to Determine Reasonable Compensation for Business Owners
Tag: dividends
Does Your Business Qualify for the Dividends-Received Deduction?
The “dividends-received deduction” is meant to reduce or get rid of an extra tax that a corporation has to pay when it gets dividends.
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.