Can Form 1120 Schedule M 3 Indirectly 2019-2024

Music. Hey guys, thanks for joining me today. My name is Wil Lopez, founder of Advisor Fight. Today, we're going to talk about reasonable compensation. If you own an S corp or have an LLC and an Inc, and have elected S corp status, you need to run payroll. So, we're going to discuss the IRS's definition of reasonable compensation and ask ourselves two important questions. The first question is, how do we determine a salary as a shareholder employee of our own S corp? The second question is, why do we care? The IRS cares greatly about this issue and we'll go over that in this video. But before we get started, if you'd like to schedule a free 30-minute consultation with our team, feel free to click on the link below or type in the web address provided. Now, let's get started. Paying yourself is a very important question you need to ask if you've elected S corp status. The potential tax savings is why you should elect S corp status. So, you need to start running a wage, which is considered compensation. Today, we're going to discuss how to determine reasonable compensation based on your tax classification. Sole proprietorships, partnerships, corporations, and S corporations have different guidelines for determining reasonable compensation. Please watch our video on tax classifications and corporate structures for better understanding. In this conversation about reasonable compensation, we'll focus on S corporations. If you've elected S corp status and are an LLC or an Inc, you need to consider how to pay yourself and the IRS's definition of reasonable compensation. An officer of an S corp is generally an employee with wages subject to withholding. Withholding refers to federal income tax, social security tax, and Medicare tax. Corporate officers may question what is considered...