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What Is Reasonable Compensation For An S Corp?

Thinking of switching your entity to be taxed as an S Corp to reduce your FICA, Self-Employment, Social Security, and Medicare taxes. However there is a catch, if you do change your entity to be taxed as an S Corp, you may potentially have a higher IRS audit risk if you don’t issue reasonable compensation. So what is reasonable compensation and what should you do to avoid getting in trouble with the IRS? We'll cover that in this video!

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