- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Business & farm
As an officer/shareholder/owner of the corporation, you are required to pay yourself a reasonable wage if you are materially involved with the management or activities of the company.
Since it appears that you are running the business by yourself, you would have to pay yourself a salary, taking into consideration things like the net profit of the business and how much you distributed to yourself from the business in the current year.
If you are a C corporation, monies you withdraw from income that you do not report as compensation, either on a W-2 form or 1099-MISC, would be considered dividends and would taxable to you as such, but not deductible by the corporation. So, you would be doubled taxed on your distributions.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
‎January 30, 2020
3:46 PM