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>It’s one of those tax tricks that works as long as nobody ever looks to closely at your tax returns, but if you’re caught you have to pay it back plus penalties.

How is that a tax trick ? Pretty much anyone owning a company pays himself a tax minimum and extracts the rest through profits, etc.



You're required to pay a "reasonable salary". So if you pay yourself minimum wage, but collect $100+k in profit, you may get funny looks from the IRS.

Rule of thumb I've heard is 50% wages 50% profit, up until $100k wages, beyond which you can really start milking the profit.


Yeah here we have a minimum director salary (which is basically median wage instead of minimum), after that everything is pulled out through profit.




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