Shareholder-Employee Compensation Advisory Services
Shareholder-employee compensation is an important planning issue for owners of closely held businesses, especially S corporations and C corporations.
For S corporation owners, compensation that is too low may create payroll tax and IRS scrutiny concerns. For C corporation owners, compensation that is too high may raise questions about deductibility and reasonableness. In either case, the compensation decision can affect taxes, business valuation, retirement plan design, and financial planning.
Rasmussen Capital Management helps business owners evaluate and document reasonable compensation as part of a broader planning process.
This service may help business owners:
Establish a supportable compensation framework
Review officer compensation relative to business performance
Document compensation assumptions
Evaluate the impact of compensation on retirement plan contributions
Support business valuation normalization adjustments
Identify potential IRS audit concerns before they become problems
Coordinate compensation planning with tax and legal advisors
The goal is not simply to choose a number. The goal is to create a thoughtful, documented, and defensible approach that fits the business, the owner's role, and the broader financial plan.
