When filing as an S Corp, you need to know what is reasonable compensation and why it is important. Thinking of switching your entity to be taxed as an S Corp to reduce your FICA, Self-Employment, Social Security, and Medicare taxes. However there is a catch, if you do change your entity to be taxed as an S Corp, you may potentially have a higher IRS audit risk if you don’t issue reasonable compensation. So what is reasonable compensation and what should you do to avoid getting in trouble with the IRS? We'll cover that in this video! If you have any questions please contact us at: (832) 295-3353 Set up an appointment with us today: https://xqcpa-bookme.acuityscheduling... Visit us: https://www.xqcpahouston.com/ Follow us to get the latest updates: https://www.twitter.com/xqcpa Like us on Facebook: https://www.facebook.com/XQCPA #ReasonableCompensation #SCorp #Smallbusiness 00:00 - Intro 00:24 - Best Way To Reduce Taxes... But There's A Catch! 00:38 - What Does Reasonable Compensation Mean? 01:26 - What The IRS is Going To Look At! 02:08 - You Need To Remember This! 02:29 - Conclusion