The answers to the following questions are in bold:
The IRS requires the following information when filing electronically.
Claiming Officer Compensation in this return (Yes/No) Yes if reasonable compensation paid on W-2
Number of Officers with Compensation (expects a number) You stated a single member LLC elected to be taxed as an S corporation. You would enter the # of officers stated in the corporation minutes.
Number of Employee W2s issued for 2019 (expects a number) Enter the # of Employee W-2s issued not including the officer compensation
The owners also should be officers of the corporation. Form 1125-E in the 1120S return would report compensation paid to officers.
An s corporation must have officers.
When you elected to be taxed as an s corporation you take on all characteristics of the s corporation, not just the ones you want.
In order to deduct the wages you paid yourself on the 1120S, you would enter those amounts reported on Form W-2 as officer compensation.
Yes, taking "cash and/or property distributions" without receiving reasonable compensation reported on Form W-2 would be quickly reclassified by IRS as compensation subject to employment taxes and assess you to late filing and late paying payroll taxes, which carry some heavy penalties.
