Determining Salary

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

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Starting, buying, or growing your small business shouldn’t be hard. Guidant Financial works to make financing easy for current and aspiring small business owners by providing custom funding solutions, financing education, and more.

Latest on Entrepreneur