Full access to Entrepreneur for $5

Determining Salary

Here's something to consider before you decide how much to pay yourself.

Opinions expressed by Entrepreneur contributors are their own.

Be careful about paying yourself a very high salary and attempting to deduct it as a payroll expense. The IRS tends to view such salaries as dividends, which could mean you can't deduct your compensation as a business expense. Plus, you'd have to pay corporate taxes on the dividend.

Excerpted from Grow Your Business