The Blueprint to Paying Yourself as an S Corp (2024)

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If you have an S Corp, then it is absolutely crucial to know how to pay yourself correctly. If you don’t, and if you make a few key mistakes, then you could get severely penalized by the IRS. The process of paying yourself as an S Corp is significantly different from paying yourself as an LLC.

As a result, many business owners who formerly had LLCs and switched them over to S Corps do not know how to pay themselves correctly. In this video, tax expert Karlton Dennis explains exactly how to pay yourself as an S Corp to prevent getting penalized by the IRS and to make sure that you get all of the hard-earned money that you are entitled to.

Additionally, Karlton also explains a few key mistakes that S Corp owners need to make sure that they avoid when they pay themselves. Topics that are discussed in this video include: reasonable salaries, the tax benefits of paying yourself as an LLC, how paying yourself as an S Corp is different from paying yourself as an LLC, and more.

CHAPTERS:
0:00 Intro
0:35 LLC vs. S Corp: Reasonable Salary
1:17 Why Do S Corp Owners Get Confused About Reasonable Salary?
4:24 Do S Corp Owners Owe Taxes on Distributions?
5:01 How to Choose a Reasonable Salary for Your S Corp
6:52 Standard Deduction Changes for 2024
7:23 What If You Don't Actually Work in the Business?
7:55 Outro

*Disclaimer: I am not a financial advisor nor am I an attorney. This information is for entertainment purposes only. It is highly recommended that you speak with a tax professional or tax attorney before performing any of the strategies mentioned in this video. Thank you.

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