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You're required to pay a "reasonable salary". So if you pay yourself minimum wage, but collect $100+k in profit, you may get funny looks from the IRS. Rule of
by mNovak 5y ago
You're required to pay a "reasonable salary". So if you pay yourself minimum wage, but collect $100+k in profit, you may get funny looks from the IRS.
Rule of thumb I've heard is 50% wages 50% profit, up until $100k wages, beyond which you can really start milking the profit.
- moonchrome 5y agoYeah here we have a minimum director salary (which is basically median wage instead of minimum), after that everything is pulled out through profit.