I have a full time job (receive W-2 form) and I have my own small business on the side. We will be filing as an S-Corp for my small business for this year however do I still need to pay myself a salary even though my salary is technically my full time job? This would be our first year filing as an S-Corp and want to make sure I don't miss any guidelines. Thanks!
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Your S corporation still needs to pay you a reasonable salary for your services from net profits (refer to the information available at the links below).
https://www.irs.gov/pub/irs-news/fs-08-25.pdf
Your S corporation still needs to pay you a reasonable salary for your services from net profits (refer to the information available at the links below).
https://www.irs.gov/pub/irs-news/fs-08-25.pdf
You are ALSO an employee of your S-Corp and as such should be paid a fair wage for your efforts. The fact you have other wages is immaterial.
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