If you "took 35k from it as compensation" it would be a wage subject to a W-2 being issued.
Taking money out as compensation is a salary, now if you did no work, then it should be a dividend (if no profits then return of capital) and it can't be a loan as there is no intent to pay it back.
Below are a couple links you should take a look at.
https://ttlc.intuit.com/questions/3781276
https://www.avvo.com/legal-answers/does-a-c-corp-have-to-pay-salary-to-sole-owner-wor-1251806.html
