I have an S-Corp which operates by project (seasonally)

[barby332]

I had a Corporation and I needed to pay myself, so I asked IRS to be taxed as an S-Corp. 

I can't pay a salary every month since the company perform seasonal services. How should I do to pay myself as a shareholder-employee?

[Critter]

Monthly payroll is not required ... you can take a payroll seasonally if that is what works for your situation  HOWEVER you must file quarterly payroll reports even if you report zero pay on them.  Seek local professional assistance for any and all payroll related questions. 

[barby332]

Thanks for your response. If I have an LLC as well could I pay the LLC and pay myself from there as a self-employed ? I am trying to avoid the payroll situation and hire a professional.

[Critter · Accepted solution]

That would not be wise ... the IRS expects the S-corp to pay the owner a wage and report it on a W-2 ... what you can do is figure out how much you will pay yourself all year and divide it by 12 and report the income quarterly as required even if you do not actually pay out the funds in even amounts.   

[AmeliesUncle]

---

@barby332 wrote:

I am trying to avoid the payroll situation and hire a professional.

---

That is the best way to pay the MOST amount of taxes and penalties, as well as dramatically increasing your audit risk.

No,  you can't report your "wages" as self employed via the other business.  Payroll is required, and in my opinion EVERY corporation should have a tax professional do the corporate return for AT LEAST the first year and be consulting with the tax professional every year after that (and/or have  the tax professional continue to do the corporate return).

The best way to have a productive business is to focus your time and effort on what YOU do best (the business) and hire professionals for other things that need to be done (such as taxes).

As a side note, is there a reason why the business is a corporation?  From your brief description, a corporation may not be the best option for the business.

[barby332]

Easy, I have a Corporation because a nice tax professional recommended of course because it makes more benefit to him 🙂

Thanks for your response 

Question Answered