5. What facts determine an agency owner’s reasonable compensation?

Why it matters: a universal salary ratio is easy to market but does not capture the owner’s work.

Good-answer framing: explain role, time, experience, revenue sources and comparable compensation, then who reviews and implements the conclusion. The IRS identifies fact-based factors for shareholder-employee compensation. IRS — S corporation compensation and medical insurance issues

Follow-up: “How do you update the analysis when the founder stops delivering client work?”

Evidence request: method description, information request and payroll handover checklist.

Expert quote: ____________________ Speaker/date/permission: ____________________