If you own an LLC that's elected to be taxed as an S corporation, there's a critical tax rule you might not be aware of: the "reasonable compensation" requirement. Many LLC owners choose S corp taxation for the tax savings but don't realize they're required to pay themselves a reasonable salary. This oversight can lead to serious problems with the IRS.

It sounds crazy, right? The federal government says marijuana is illegal but still wants tax money from weed businesses. Here’s why cannabis businesses have to pay federal income taxes even though they’re illegal.