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Single member S Corp Profits for Reinvesting

hawaiianstyle808 — Tue, 10 Mar 2026 06:41:10 GMT

I am a single-member LLC that elected to become an S Corp for the 2021 tax year. Are s-corp employees required to receive a paycheck?

I'm aware of the discussion on the salary vs dividend ratio but I would like to continue having business income pay for my certifications, equipment, and training instead of having to take a portion early on. I a salary MUST be distributed, can I withdraw my request for S Corp election that same year I requested it?

Re: Single member S Corp Profits for Reinvesting

Anonymous_ — Tue, 29 Nov 2022 03:10:04 GMT

S corporations must pay reasonable compensation to a shareholder-employee in return for services that the employee provides to the corporation before non-wage distributions may be made to the shareholder-employee.

See https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-compensation-and-medical-insurance-issues

With respect to revoking an election, refer to the information at the link below.

https://www.irs.gov/forms-pubs/revoking-a-subchapter-s-election