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Blog: Blog2

Have a Corporation? Payroll Isn’t Optional, Period.

  • Writer: Rachel Biondo
    Rachel Biondo
  • Aug 26
  • 2 min read

Updated: Aug 27

If you have a corporation and you’re not paying yourself through payroll, you’re out of compliance with IRS rules. The IRS makes it clear: if you work in your business, you must pay yourself a reasonable salary. This isn’t a loophole or a strategy, it’s a requirement. Running payroll is the smartest way to stay compliant, protect your corporation, safeguard tax savings, and maintain credibility with banks, investors, and the IRS.

Why Payroll Matters

If you own an S-Corp or C-Corp and actively work in it, you must pay yourself through payroll. Shareholders who provide services are considered employees under IRS rules. Skipping payroll isn’t just cutting corners, it risks IRS scrutiny, penalties, and even the loss of your corporate protections.

The cost goes beyond compliance. Skipping payroll can also mean losing out on thousands of dollars in tax savings each year.

Running payroll keeps your books clean, strengthens your financial statements, and positions you for growth — whether that’s securing a loan, attracting investors, or building long-term retirement wealth.


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The Bottom Line

Payroll isn’t optional. It’s an IRS requirement and a smart way to protect your corporation. More importantly, it can save you thousands every year. Skipping payroll isn’t cutting corners, it’s costing you money.


What to Do Next

  • No payroll yet? Let’s set it up before year-end so you don’t overpay taxes.

  • Not sure what to pay yourself? I’ll help you find the right salary that keeps you compliant and saves you money.

  • Just starting out? I’ll walk you through setup and keep it simple from day one.

👉 Ready to see your savings? Let’s run your numbers.


Payroll: Required & Rewarding

If you own a corporation, payroll is required. Shareholders who work in the business must be paid as employees. The good news? Done right, payroll doesn’t just meet IRS rules—it can save you over $15,000 on $100,000 of income.

You can run payroll by hand, or I can set it up and manage it for you. Either way, it needs to happen.

 
 
 

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