Formed a new startup company last year in DE, but operating in CA as foreign entity. The "Company" issued me 7,500,000 shares of restricted stock with par value of $0.0001 at time of incorporating in return for $750 (investment capital). A total of 10,000,000 shares are available for issue. There are no employees except myself (owner). I did not pay myself any salary and the company made zero dollars. However, I did continue to develop my idea which is a new website. I have some minor startup costs associated with the usual incorporating fees and such.
Using TT Business, I filled out the information to file business taxes and it states: A major audit risk for corporations is salaries not being paid to officers of the corporation.
Should I have paid myself a nominal salary (such as $100 for the entire year) no matter what? Even if I didn't want to pay myself anything because the company made no money? I don't want to get audited for not paying myself.
