I started an inc in Nov 2021 (approved article of incorp thru state), got EIN and filed 2553 for s corp status in Dec 2021, effective 1/1/2022. Now i only had expenses in 2021 so i plan to file a zero return 1120 for 2021. Im trying to hire a CPA to do payroll etc and file taxes, withholding etc. Now one CPA told me if you start slow and are not expecting any major income in Q1-22, you dont need to do payroll. A K-1 can be filed. Basically if the income is small in the beginning, he said you dont need a payroll.
My question is, i thought for an s corp payroll was mandatory. Also, i thought you dont need monthly payroll, quarterly is acceptable. Can anyone guide me if this CPA is correct as far as filing K-1 goes. Because he seemed to be more trustworthy and not as expensive as others.
