Yes, it is required by the IRS that the owner take a W-2...

Does a tiny/one-owner C-corporation with no dividend distribution require to pay a salary?

I only work on it on my free time and this year it is profitable (tiny net income, under 500 for the whole year, on a small revenue.) Last year was its first year and had a small net loss. C-corp has no employee, no dividend/distribution. Can I work for it for free (i.e. no salary/payroll)? At least until I can grow my customers/sales to take anything out as salary.

Thanks

posted

Yes, it is required by the IRS that the owner take a W-2 salary. However, when a new company does not generate enough income to pay the owner initially, the company just can't afford to pay. See below similar situation.

https://ttlc.intuit.com/replies/5794296

IRS helpful link: https://www.irs.gov/pub/irs-pdf/i1125e.pdf