buksoS corporation reasonable salary distributions
Not tax advice. General bookkeeping information only, checked against the official sources linked below (Canada Revenue Agency, IRS, provincial governments and Justice Laws) on Oct 17, 2026. Rules change; check with your accountant before you file.
United States
S corporation shareholder-employees must be paid a reasonable salary for their work before taking distributions; the IRS can treat distributions as wages if the salary is too low.
Official source: irs.gov