Legal Question in Business Law in New York
CEO Wages
I have a S-corp and I plan on putting myself on the payroll. However I am just about to start operating so I haven't turned a profit yet. Am I required to put myself on the payroll now or it won't affect anything since I'm a S-corp?
Should I just pay myself $1 a year until I turn a profit?
Thank You
Asked on 3/19/05, 8:40 pm
1 Answer from Attorneys
Kaiser Wahab
Wahab & Medenica LLC
Re: CEO Wages
As the CEO you are not required to take a salary. You can perform such services for gratis, which many officers "in name" do. However, if you intend to take a salary for tax or other purposes at some later juncture, be aware that the IRS requires that your salary should be "reasonable" compensation for your services.
Answered on 3/19/05, 8:45 pm
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