How to Pay Yourself in an S Corp (Salary vs Distribution) | CPA Explains

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Did you form an S Corp to save on taxes, but now you're wondering how to actually pay yourself? Should it be payroll? A check? A transfer? And what is a reasonable salary anyway?

You're not alone — this is one of the most asked questions among S Corp owners and real estate professionals.

In this video, I walk you step-by-step through:
✅ How S Corps actually save you money
✅ Salary vs shareholder distributions
✅ What “reasonable compensation” means
✅ How to run payroll the right way
✅ When and how you can take distributions
✅ Avoiding IRS penalties and reclassification
✅ Tools you can use to stay compliant

Once you learn the right structure, paying yourself becomes simple - and it protects your tax savings AND your ability to qualify for lending.

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00:00 Introduction
00:45 What is an S-Corp
01:40 Role in S-Corp
02:21 Employee pay
03:00 Reasonable Salary
06:43 Owners Pay
08:48 How to Navigate
10:55 Conclusion