romanbansal
New Member

I solely own a C Corporation and do not plan to distribute any dividends nor pay myself any salary - is this legal?

Hello,

I solely own a C Corporation and do not plan to distribute any dividends nor pay myself any salary - is this legal? 

If not, at what point/income do I require to pay myself salary/dividends. I would like to keep all corporate earnings inside the corporation and not take any funds out for several years, can I do that?

Thank you.

‎June 6, 2019 4:47 AM
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RichardG
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Get your taxes done using TurboTax

While this is legal, it may not be a wise strategy.  If you are actively working in this corporation, taking a salary and lowering the company's taxable income is usually advisable.  Keep in mind that the income of a C corporation is taxed twice: once at the corporate level and again when distributed as a dividend to the shareholders.  

Please follow the link below for more information.

https://www.aicpastore.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2014/CorpTax/paying-c...

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‎June 6, 2019 4:47 AM
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