$28K vs. $85K — Same Profit, Only One Salary Survives an Audit
Two owners. Same profit: $200,000. Same industry. Same role. Wildly different salaries and only one of them holds up under scrutiny. Owner A pays himself $28,000 in salary and takes the rest as distributions. There’s no wage benchmarking behind it, no written analysis, and he hasn’t revisited the number since he incorporated. If asked, he
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