QBI deduction

Legal Questions
1

Hi Mark and Mat-

My understanding has always been to convert an LLC to an S-Corp once the business starts to make $40-$50K in net income. Then, take about 50% in reasonable comp (adjust down as the business makes more money). I recently read a Linkedin post that said this can be bad advice because the reasonable salary takes away from the QBI deduction, so I am curious, how do you guys balance taking a salary from an S-corp with the QBI deduction for your clients?

Loved seeing you both live in Salt Lake City! Making plans for AZ this Dec.

Thanks,

Tony

2

Fielded your question today on the Open Forum show recorded July 24. Should be posted in a couple of days. Thank you for the question! Mark and Mat