Posts Tagged ‘Reasonable Compensation’

3 Proven Reasons a Connecticut Business Owner Should Elect Subchapter S

Gesture - Three Fingers (with clipping path)



Business owners of corporations will by default have a “C” Corporation.  If they are eligible and they elect, they could be a Subchapter S (“Sub S”) corporation.




An eligible Sub S corporation meets the following criteria:

What is Reasonable Compensation and Why Closely Held Business Owners Should Be Concerned

This is a big issue with the IRS and closely held C corporations right now.  The focus is whether or not the owners-employees, as well as family members, are reducing their profits through large salaries and bonuses.

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