Bookkeeping Services

S-Corp Reasonable Compensation

Tired of guessing your
S-Corp salary?
We’ve got you covered.

Do you wear many hats in your S Corporation? As a business owner, you might be handling everything from bookkeeping to marketing to operations. But have you ever wondered what it would cost to hire someone to take over all those roles? That’s where an S-Corp Reasonable Compensation Report comes in.

A Report for Peace of Mind

Our S-Corp Reasonable Compensation report provides an unbiased estimate of the value of your services. We rely on robust data from the Bureau of Labor Statistics (BLS), U.S. Census data, and the Reasonable Compensation Reports, Inc. database to ensure accuracy. This report helps you to confidently determine a reasonable salary for yourself. We even provide sample language for your corporate minutes to help you document the report’s findings.

  • Estimated Annual Reasonable Compensation: The report provides a reasonable estimate of the value of services you render to your S Corporation based on your annual duties and responsibilities.

  • Methodology: The report uses the Cost Approach to determine the Reasonable Compensation figure, which considers all the tasks a business owner performs for their company, such as administration, accounting, and marketing.

  • Data Sources: The calculation relies on data from Reasonable Compensation Reports, Inc., the Bureau of Labor Statistics (BLS), and U.S. Census data. The BLS defines “year-round, full-time” employment as 2,080 hours per year.

  • Time and Compensation Breakdown: The report includes a breakdown of time and compensation by business function, such as Marketing, Finance, Inventory, and Management.

  • Sample Corporate Minutes: The report provides sample language for your corporate minutes, which can be used to incorporate the report’s results. This sample language includes a resolution to pay the determined salary.

Reasonable Compensation Report

$175one time fee
  • Online Questionnaire
  • Customized Report
  • Methodology Approaches
  • Defensible Reports
  • Reliable Data Sources