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@wmmosley wrote:

you can't make 600,00 and pay yourself 200.00 a week, that unreal. 

Also a owner can also make a distribution but cannot go over the amount they pay themselves. 

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No, the reasonable compensation is based on the work performed.  If an owner has a manager that does all of the work and the only thing the owner does is call the manager once a month and file the tax return, $200 a week may be fine (or maybe even too high).  But if the owner does all of the work, you are right, the compensation needs to be reasonable for the amount of work performed.

Distributions are not directly related to compensation.  In my example above, if the owner does almost no work, the salary would be very low and the distributions could be very high.   But if the owner does all of the work, the majority of the profit would be salary/compensation.