Reasonable Compensation Report

At Cerebral, our mission is to ensure that our clients stay compliant with financial and tax regulations. One vital but frequently overlooked element is accurately determining the compensation for company owners and executives. That’s precisely why we offer our clients a Reasonable Compensation Report

What is a Reasonable Compensation Report?

Reasonable compensation refers to the fair and justifiable amount that an individual should receive for their role within a company. The IRS mandates that all shareholders of S Corps, who actively contribute their services to the company, must pay themselves Reasonable Compensation before considering any distributions. To establish this compensation, it’s vital to evaluate your contributions to your S Corp comprehensively. 

A Reasonable Compensation Report is a document that determines your Reasonable Compensation in alignment with IRS criteria. This report serves as a robust defense in the face of any IRS scrutiny and is a valuable tool for strategic planning.

How to Request an RC Report?

To request your customized Reasonable Compensation Report, simply click the link below and complete a brief survey.

Your report will be crafted based on the information you provide in the survey, ensuring its precision and relevance.

Frequently Asked Questions