Tax Playbook · Business owners
S-corp election
Self-employed and profitable (roughly $80,000+/year)? Elect S-corp tax treatment: pay yourself a fair salary, and take the rest as profit distributions — that second slice skips the 15.3% payroll tax. The catch: your salary has to be reasonable, or the IRS will object.
Good for: Profitable freelancers and small businesses (roughly $80k+ profit).
Learn the basics
Recent articles & guides
- IRS — S corporation compensation and medical insurance issues
- Catalyst CPA — S corp reasonable salary 2026
- SDO CPA — determining S-corp compensation
On this site
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Educational summary, not tax advice. Limits and rules change — confirm current law with your tax adviser.