"that my clients are too small to bother the IRS (All are less than $500K sales)."

How is that "too small" for the IRS?

"I usually choose an annual wage for the client of about 1/4/ to 1/3 of annual nontaxable distributions then let it go."

I usually look to the BLS for job descriptions and pay similar to the type of work and the region; the Job Service has great guidance, as well. That shareholder-employee also knows what that sort of work would pay if they got employed by another, and didn't try to run their own business.

I've also used this material and reviewed their videos:

https://rcreports.com/