2019 New S-Corp

[chadnick]

I started a S-Corp at the end of 2019.  The business had no income.  The business did have expenses.  I am the only employee and the only shareholder. 

1.  Do I need to issue myself a W-2 or 1099?

2.  Do I need to give myself a "reasonable salary" when the business made no income in 2019?

3.  Do I only need to file a 1120-S form?

4.  Will I get a K-1 to enter on my personal taxes, since I personally paid for the expenses of the business?

[Irene2805]

1.  A W-2.  As the sole owner of a Sub-S corporation, any compensation that the corporation pays you (you have to think of the corporation as a separate entity) is to be reported as wages, on a W-2. 

You're supposed to withhold income taxes, and employment taxes (Social Security and Medicare and FUTA) on your wages, and the corporation pays the employer's part of those payroll taxes, and the corporation files quarterly tax returns during the year to report the payroll taxes and withholding and makes payments, usually monthly, with the IRS.

2.  Yes.  See this IRS article:  Reasonable Compensation - Internal Revenue Service

3 & 4.  As part of the 1120-S return, you (or your preparer) will prepare a K-1 for each shareholder.  This information will be entered into your personal tax return.