I am the sole person running and participating in my S-Corp. I've read in other posts that S-Corp MUST pay me a salary if I actively participate, and more specifically advise I should pay myself a "reasonable" market-based salary. My very small S-Corp made less than $12,000 last year... after expenses and deductions I expect the business will maybe have +/-$7,000 in business income. These amounts of money do not even come close to supporting or paying myself a "reasonable" market-based salary. In this case, is it more appropriate to simply report any Ordinary Business Income from my K-1 [Box 1] in my 1040 personal taxes?
