Quote:
Originally Posted by Buehler445
Ummmm... No. The main reason I have the S-Corp is to retain earnings and service debt without the burden of SE tax. I do most of my work in the S-Corp, so my wage needs to be pretty high to be reasonable. I'm good.
Besides I work for her during tax season and she pays me (more than I pay myself).
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The wage does need to be reasonable, of course. As I outlined previously, though, depending on the range you're talking about, a firm rule that you won't take a dividend more than your salary could potentially eliminate much of the benefit you're getting from the S Corp.
Again, if you're talking about $40k - $50k then you probably shouldn't go more than a 50/50 split. If you're talking about $150k, though, and you're still afraid to adjust that split, then you're losing out on big savings.
To each his own.