Hello,
I solely own a C Corporation and do not plan to distribute any dividends nor pay myself any salary - is this legal?
If not, at what point/income do I require to pay myself salary/dividends. I would like to keep all corporate earnings inside the corporation and not take any funds out for several years, can I do that?
Thank you.
While this is legal, it may not be a wise strategy. If you are actively working in this corporation, taking a salary and lowering the company's taxable income is usually advisable. Keep in mind that the income of a C corporation is taxed twice: once at the corporate level and again when distributed as a dividend to the shareholders.
Please follow the link below for more information.
While this is legal, it may not be a wise strategy. If you are actively working in this corporation, taking a salary and lowering the company's taxable income is usually advisable. Keep in mind that the income of a C corporation is taxed twice: once at the corporate level and again when distributed as a dividend to the shareholders.
Please follow the link below for more information.