Thanks, did you read RcReport article? Was that helpful? I think you and @Dusty after reading that article understanding me. We can stop this conversation. No need to open new conversation or bring a new idea since business's world has a lot of different cases unlimited!! Yes, reasonable comp for him is $6000/month as a whatever . I checked salary.com and the U.S. Bureau of Labor Statistics (https://www.bls.gov/ $6000/ month was fine. But S-Corp did not make money since no offer not have a lot of customers  or ... (new business) we cannot say since he worked 2080 hours in his/her  office so consider 2080 hours* $34=$72000 would be his gross, not at all. Yes, we can say he stayed and worked (both) 2080 hours in there but made $32000 based on bank statement, different scenarios and do not mix them, he did not work for other company, yes, if he worked for other employer you right. Should not be $32000 it should be $72000 more and less as like as similar job (cost approach). It usually happens it is normal for the first year or when the Covid was even loss came in on P&L. I am sure that I did my homework well. Search more articles to find out may other conditions there are in business. Some of people without understanding of S-Corp formed it but after that they regretted and back to Sch C. let's back to my QBI question and forget about it.