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Personal Finance

How much should an S-Corp owner pay themselves?

Quick Answer

S-Corp owners must take reasonable W-2 compensation for services performed before taking distributions. Industry guideline: 30–60% of net profit, benchmarked to comparable salaries. Distributions above that avoid the 15.3% SE tax.

S-Corp owner salary versus distribution split with tax implications.
Warren Team
Updated April 26, 2026
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The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.

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