Single member S Corp Profits for Reinvesting

[hawaiianstyle808]

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?

[Anonymous_ · Accepted solution]

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...

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