- August 1, 2020
- Posted by: Paul Hamann
- Category: Blog
By Paul S. Hamann & Jack Salewski, CPA, CGMA
As we approach planning season and you take stock of your practice, think about your clients who are a pleasure to work with, have unique needs, or complex situations; you may realize you find yourself thinking about your small and medium business (SMB) clients. A demanding bunch for the most part, as they should be. They have engaged you to watch out for their best interests, and to point out tax and business strategies that will continue to help their business prosper; you are, after all, their trusted advisor.
One of the hard and fast rules of working with SMB’s is the need to regularly advise them on the topic of Reasonable Compensation. The subject comes up from darn near the first conversation – when they are forming the business and choosing their entity, to the day when the business is sold or passed down to the next generation, waiting in the wings. (more…)