You'll need to sign in or create an account to connect with an expert.
@pmac0677 Regardless of how you handle this matter, an S corporation must pay reasonable compensation to a shareholder-employee for services rendered to the corporation.
If you filed IRS Form 2553 to have your LLC treated like an S-Corp, then as far as the IRS is concerned it "is" an S-Corp. Period.
YOu certaingly can pay yourself as a sub-contractor. But if you pay yourself as a sub-contractor then that means you will be filing a SCH C with your personal tax return and paying self-employment tax on that money. That's kinda defeating the whole purpose of filing the 2553 in the first place. You've gone around your elbow to get to your thumb, but ended up under your big toe.
@pmac0677 Regardless of how you handle this matter, an S corporation must pay reasonable compensation to a shareholder-employee for services rendered to the corporation.
thanks!
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
jwlenz
Returning Member
swparker
New Member
RH55
Level 2
PGB12
Level 2
JesseUCAVedYou
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.