Having read through all of the above interaction, would like to point out-- > (a) directors of the corp ( S or otherwise ) receive compensation that is not dictated by the IRS but generally is controlled by the board ; (b) this compensation is usually reported on 1099-misc or similar depending on the kind of remuneration -- in kind or in cash, there may also be benefits such as health coverage -- but fundamentally it is not re-portable on W-2 and no withholding ; (c) employee wages are constrained by "generally prevailing wages for similar job " and IRS dictates that; (d) there is withholding and all the labor laws of the state come into force .
So @arvandbiz , while as a one owner small corp, it is possible that you are both the employee brining in the income for the corp and the director making the long term decisions, you still need to decide which is your main role ( generally the employee ) and pay yourself "prevailing wages" and then decide whether you should also draw something as a director (1099-MISC ) , in addition to a share holder ( K-1).
Very strongly suggest that at least for the first year , you employ the services of a tax professional ( so the books are set up properly ) and then you can do by yourself. Errors here can cost you a lot down stream.
Good Luck
