Your S Corporation Has Strong Profits. How Should You Pay Yourself?
Build an owner pay policy around actual work, cash commitments, and separate payment categories.
THE WORKING TOOL
Owner cash-flow worksheet
Map the difference between business profit, company cash, and money available to the owner. This worksheet does not calculate taxes or establish reasonable compensation.
Read before deciding.
A Reasonable Compensation File That Explains What the Owner Actually Does
Document duties and business economics before choosing a wage figure.
Owner Draws, Wages, and Distributions Are Different Transactions
Classify the payment before using it to judge taxes or spending power.