I cannot change to a "single-member LLC" because:
- this is already an LLC.
- it is not single-member
Regardless, that doesn't really matter here because an LLC is not an taxation option, it is a state-law concept for liability protection. An LLC can be taxed as an S-Corporation, this one has previously elected to be taxed as a C-Corporation.
You mention "reasonable compensation". That topic may be out-of-scope with the question, that "reasonably" is typically more of an issue for S-Corporations, where shareholders are tempted to not compensate themselves enough to save on employment taxes. The reverse is true with C-Corp where compensating yourself with a huge salary reduces your business taxable income, which the IRS may not like, but I'm not trying to give myself an unreasonable bonus here. And, I actually am trying to pay some FICA and income taxes instead of taking money out as a dividend.
I said "I would like to pay myself an occasional bonus when business income allows it" and "income is irregular", therefore I do not understand what needs "clarification". When there is business income, the business could issue a dividend, or I could take another form of compensation.
That question is about how not to take a dividend. I'd like that bonus to be subject to FICA taxes, but I don't want to have to setup a monthly salary.
