10/17/2026
If you own an independent pharmacy through an S-corporation, you’ve probably heard the pitch: pay yourself a modest salary, take the rest as distributions, and save on payroll tax.
The structure is legitimate, and the savings can be real. But the IRS requires S-corp owners who work in the business to be paid reasonable compensation for the services they provide, and that’s where owners most often slip up.
In this article, we break down three common mistakes and what to do instead: https://www.sykes-cpa.com/blog/