RCReports is a tool to determine Reasonable Compensation for a client and is an invaluable resource for Tax and Finance Advisors. They have articles packed full of information that could help you as you work with your clients and your business. Recently, we received an email from them with an interesting question attached to it:
“If there is only one shareholder and no other employees, should all distributions be taken out as Reasonable Compensation?”
This is a common question that RCReports gets and the answer is: “Maybe.”
If you want to learn more, follow the link below and read the article.
You can find the post here: Reasonable Compensation and the Single Shareholder S Corp