QuestionsService Businesses

How much should I pay myself from my S corporation?

Enough to count as reasonable compensation for the work you do. The IRS expects S corporation owners who work in the business to take a real salary before taking distributions. We set a number you can defend, based on your role and what you’d pay someone else to do it.

Authority: Rev. Rul. 74-44

Updated October 2026. General information, not advice for your situation.

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