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 Blog: Insights From the Fastlane

S-Corp Reasonable Salary - Effort vs. Capital: Our Framework for Setting the Lowest Defensible Owner Salary
Mike DiSabatino
When an S-corp nets $150,000 to $250,000 before owner salary, the reflex is to crank up wages “to be safe.” That’s not always necessary. Our firm applies an effort vs. capitalization framework that pegs wages to the owner’s actual labor and credits a fair return to capital and systems. Used correctly, this approach can support a $50,000 W-2 wage fo
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Reasonable Salary for S-Corp Owners: What It Is, Why It’s Required, and How We Defend It (Effort-Based)
Mike DiSabatino
The Rule, In Plain English An S-corporation must pay shareholder-employees a reasonable salary for the services they perform before distributing remaining profits. This isn’t folklore; it comes from how the Internal Revenue Code treats compensation and payroll tax: IRC §162(a)(1) allows a deduction for “a reasonable allowance for salaries or other
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What Is a SWOT? Why You Should Actually Do One?
Mike DiSabatino
Let’s be honest: we toss around “SWOT” a lot. CFOs love it, consultants swear by it, and half the time it’s a slide that gets skimmed between coffee refills. But do you actually know why it matters, or how to use it so it changes decisions and dollars, not just meeting minutes? Let’s review, simply and practically. A SWOT analysis is a simple frame
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