What's the smartest way to pay yourself as an S Corporation owner? The answer isn't as simple as pulling money from your business account. Miscalculating your salary versus distributions could lead to tax penalties---or even an IRS audit.

On this episode of Become Sensible, we're breaking down how to pay yourself as an S Corp owner the right way. Fiona Nguyen explains the tax advantages of S Corporations, how to determine a reasonable salary, and why balancing your salary and distributions is crucial. Plus, we discuss the payroll setup process, quarterly tax planning, and key deadlines that could save you thousands in taxes.

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Follow me, Fiona Nguyen, on LinkedIn. Learn more about Balannx.

Timestamps

• 2:30 -- The tax advantages of an S Corporation and why it can save you thousands
• 5:00 -- What is self-employment tax, and how does an S Corp help reduce it?
• 8:30 -- Determining a reasonable salary to stay compliant with the IRS
• 12:00 -- Payroll setup: Tools, tax withholdings, and state requirements
• 15:30 -- The importance of tax planning in the last quarter of the year
• 18:00 -- Deadlines: Why March 15 is a critical date for your S Corp
• 20:00 -- Action steps to ensure you pay yourself correctly and maximize tax savings

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Too many business owners unknowingly give away thousands of dollars to the IRS every year simply because they don't know the tax code. What if you could keep more of your hard-earned money---legally? The biggest tax-saving opportunities are often hidden in plain sight. Are you missing out?

On this episode of Become Sensible, we break down the most common tax mistakes business owners make, from poor bookkeeping habits to incorrect entity selection and missed deductions. You'll learn why simply "setting and forgetting" your tax strategy could be costing you thousands. Plus, we'll cover crucial tax changes, overlooked deductions, and strategic tax planning techniques to help you keep more money in your pocket.

Connect

• Follow me, Fiona Nguyen, on LinkedIn. Learn more about Balannx.

Timestamps:

• 0:00 -- Introduction: The most common tax mistake business owners make
• 0:51 -- Why business owners overpay in taxes and how fear plays a role
• 2:00 -- The "set it and forget it" mentality that leads to missed deductions
• 2:54 -- How tax laws change frequently and why staying updated is crucial
• 4:14 -- The impact of new tax regulations and upcoming changes
• 6:09 -- Common tax overpayment scenarios and how to avoid them
• 8:00 -- The importance of entity selection for tax efficiency
• 9:51 -- Overlooked business deductions that could save you thousands
• 12:00 -- Why bookkeeping mistakes lead to higher taxes and how to fix them
• 13:21 -- Structuring your income and expenses to legally reduce taxes
• 14:48 -- The power of tax planning: When and how to work with a tax professional
• 16:09 -- Why last-minute tax planning won't work---and what to do instead

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What if we could grow a thriving business while securing our financial future at the same time?

Too many business owners pour every dollar back into their company, thinking growth will take care of everything---only to realize, years later, that they have nothing set aside for themselves. There's a better way.

On this episode of Become Sensible, I explore how to build long-term wealth while running a sustainable business. I break down key money mistakes entrepreneurs make, why your business isn't your retirement plan, and how diversifying your investments can provide stability. I also share actionable strategies for setting up retirement funds, tax-efficient investment planning, and how to make financial decisions that align with both your business and personal goals.

Follow me, Fiona Nguyen, on LinkedIn. Learn more about Balannx.

• 0:36 -- The biggest mistake: Reinvesting every dollar back into the business
• 2:00 -- When reinvesting stops making sense and becomes unsustainable
• 3:15 -- Why your business is NOT your retirement plan
• 4:30 -- The power of compound growth: Why money needs time to grow
• 5:48 -- The importance of financial diversification beyond your business
• 6:52 -- How much money should you take from your business for personal wealth building?
• 8:10 -- The dangers of not planning your personal finances early enough
• 9:25 -- Setting financial KPIs: How to measure success beyond revenue
• 10:40 -- Retirement planning for entrepreneurs: Solo 401(k) vs. SEP IRA
• 12:18 -- Traditional IRA and tax advantages of different retirement accounts
• 13:45 -- Smart investing strategies: Balancing risk, growth, and diversification
• 15:05 -- Why automation is key: Setting up automatic transfers to grow wealth
• 16:20 -- Real estate as an investment strategy for business owners
• 17:48 -- Understanding cash flow, appreciation, and tax efficiency in real estate

19:00 -- How to prepare for unexpected expenses while still investing

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