To any docs out there in S-Corps, how do you decide how much to pay yourself in W2 income versus quarterly distributions?
Based on current revenues, our groups total income per partner is around 400-450k per year. We pay ourselves 300k on W2 and the rest of income comes through distributions or retirement account profit sharing.
I am wondering if it would be worthwhile to decrease W2 income, especially if the new tax proposal goes through which would lower corporate tax rates (this would help S-Corps, right?).
Large surveys say that the average income in my field is anywhere from 250-300k.
The questions I have is
1) How low would be "too low" of a W2 income.
2) Would a sudden change of our W2 income be dangerous in that it could trigger audits
Based on current revenues, our groups total income per partner is around 400-450k per year. We pay ourselves 300k on W2 and the rest of income comes through distributions or retirement account profit sharing.
I am wondering if it would be worthwhile to decrease W2 income, especially if the new tax proposal goes through which would lower corporate tax rates (this would help S-Corps, right?).
Large surveys say that the average income in my field is anywhere from 250-300k.
The questions I have is
1) How low would be "too low" of a W2 income.
2) Would a sudden change of our W2 income be dangerous in that it could trigger audits
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