NateTheGrEAt
Employee Tax Expert

Business & farm

Since you stated that the entity will be taxed as a C Corporation, then yes, if you are providing services to the corporation you must be paid reasonable compensation (i.e. wages) for the services. Here is an IRS article about the topic; check the first item under "Corporate Officers". 

 

Also, be aware that from a tax planning standpoint, wages paid to you are deductible by the corporation as an expense. Dividends are not deductible, so they would be subject to double taxation, first at the corporate level and then again on your personal tax return. 

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