The S-Corp W-2 + K-1 Disconnect at Big Banks
Draft placeholder copy — If you own an S-Corporation or multi-member LLC, you have probably experienced a loan officer looking only at your modest W-2 officer salary while ignoring the actual cash flow sitting in your business accounts or K-1.
In a properly structured review, we examine Form 1120S or Form 1065 line by line—adding back non-cash depreciation, amortization, and one-time expenses—or we bypass corporate tax returns altogether using 12 months of business bank statements.
Three Numbers We Check Before You Make an Offer
- Ownership percentage on your K-1 (25%+ ownership unlocks full business cash-flow analysis, with flexible options for minority partners).
- 12-month average operating deposits vs. two-year tax return average—picking whichever path gives you the cleanest approval and best pricing.
- Reserve liquidity inside the business account vs. personal accounts so you don't unnecessarily drain working capital for closing.
Bottom-Line Takeaway
A 15-minute upfront review of your K-1s or 12-month deposit summary lets us give your listing agent a rock-solid pre-approval with no last-minute underwriting surprises.
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