For business owners, estimated taxes are rarely a flat, once-a-quarter math problem. Between S-corp reasonable compensation, Schedule K-1 timing, seasonal revenue swings, and California's own overlay of rules, a generic “pay 25% each quarter” approach almost always gets it wrong — either tying up cash you need for the business or quietly building toward an underpayment penalty. This week, we're walking through how to build an actual estimated tax model instead of a guess.

Putting your spouse, child, or parent on the payroll is one of the most common — and most misunderstood — small business tax moves. Done correctly, family employment can shift income to lower tax brackets, unlock retirement plan contributions for a minor, and even eliminate certain payroll taxes entirely. Done carelessly, it's one of the fastest ways to draw an IRS examination, because the family relationship itself is a built-in audit flag.

If you own an S corporation and take distributions, there's one number the IRS watches more closely than almost any other: your salary. Specifically, whether it's reasonable. Getting this wrong isn't just a technicality — it's one of the most common (and costly) audit triggers for small business owners. What Is Reasonable Compensation? The IRS requires that S-corporation shareholder-employees who perform services for the company pay themselves a reasonable salary before takin