Every S-corp owner eventually runs into the same question from their accountant: what should your salary actually be. It sounds like a simple number to pick, but it’s one of the few areas where the IRS actively looks for businesses getting it wrong, and getting it wrong can unwind the whole reason an S-corp made sense in the first place. Lang Tax Solutions works through this calculation with clients every tax season, and the short version is that reasonable compensation isn’t a guess or a round number, it’s a defensible figure tied to what the work is actually worth. Why… Read More »
Quarterly Estimated Taxes for the Self-Employed
The self-employed people who get burned by estimated taxes almost always fall into one of two camps. Either they ignore the payments entirely and get hit with a penalty the following spring, or they overcorrect and send the IRS more than they owe, tying up cash the business actually needed. Lang Tax Solutions works with self-employed owners across South Dakota and Nebraska on getting these payments right, and the target isn’t complicated once you understand what the IRS is actually checking for. Why these payments exist in the first place Employees have taxes withheld from every paycheck automatically. Self-employed people,… Read More »