Entity & Owner Compensation

Your business is growing, profitability has increased, and you need to determine if your current legal entity and compensation structure are still the most efficient for your tax and liability profile.

We review the holistic picture: evaluating S-Corporation elections, partnership structures, the balance between W-2 wages and distributions, and the integration of qualified benefits and retirement plans.

More complex entities can add payroll, governance, and filing obligations. For an S corporation, shareholder-employees and officers who perform services may be subject to reasonable-compensation and payroll requirements. Any potential benefit should be weighed against administrative cost and the owner’s specific facts.

Requires formal entity governance documents, regular compensation studies to defend salary levels, corporate resolutions for distributions, and meticulous payroll records.

We work directly with your legal counsel to form or convert entities, draft operating agreements, and coordinate with your payroll provider to implement the compensation plan.