I have an S-Corp (2 owners/officers) starting to generate revenue, what percentage should be officers distributions versus W2 (lowest possible)? Using $8000 for example

[bwa · Accepted solution]

There is no one answer to your question.  The IRS only expects that shareholder's be paid a reasonable salary for the services they perform before any distributions are made to owners.  There is no magic formula or IRS guide for reasonable salary.

[TaxGuyBill]

It also depends on what the business is doing, if there are employees or equipment earning money, etc.

In my opinion, in a business that only provides services and there are no employees or equipment 'working' for the business, ALL (or almost all) of the profit should be wages.