Healthy businesses produce healthy income for their owners. Compensation for business owners can take different forms. This episode discusses the primary forms of owner compensation and associated tax considerations. We also review bookkeeping and reporting considerations for how owner compensation is booked and reported on financial statements. 

More specifically, this episode includes:

• The primary forms of owner compensation and how they are taxed both on the business and on its owner-employees 
• How entity type and tax elections impact the taxability of owner compensation
• S-corporations and reasonable compensation standards
• How accounting for owner compensation can have a dramatic impact on financial statements and evaluating business profitability
• Pitfalls to avoid with owner compensation
• The importance of your CPA utilizing a holistic tax plan to help optimize your tax liabilities

Connect with guest Greg Reed at:
www.smartbookstax.com
[email protected]

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Sponsored by SmartBooks. To schedule a free consultation, visit smartbooks.com.

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Host Cal Wilder can be reached at:
[email protected]
https://www.linkedin.com/in/calvinwilder/