Daughter is Corp officer

[Possi]

I am a sole owner s-corp. I pay myself a reasonable wage and take some draws.

Last year, I named my daughter as a financial officer for a couple of reasons. First of all, she gives her mother free advise, as she is a financial professional. Second, I needed her signature on my corp account in case I die doing these crazy tax returns. I want her to be able to step in and work the business, close the business or sell the business.

I do not pay her a salary. I can't afford to pay her. I barely make enough to pay myself.

I do not prepare corp returns except for my own, which is very simple, so I don't claim to know much about it.

My question is this: With all the chatter I'm reading regarding officer paychecks, will I get in trouble for naming her as an officer and not paying her a salary?

Sounds like a dumb question now that it's written, but I'm submitting it anyway. You are a KIND bunch, after all...

~donna aka possi

[ChEAr$]

Here is a different situation

I am a sole owner s-corp. I pay myself a reasonable wage and take some draws.

Last year, I named my daughter as a financial officer for a couple of reasons. First of all, she gives her mother free advise, as she is a financial professional. Second, I needed her signature on my corp account in case I die doing these crazy tax returns. I want her to be able to step in and work the business, close the business or sell the business.

I do not pay her a salary. I can't afford to pay her. I barely make enough to pay myself.

I do not prepare corp returns except for my own, which is very simple, so I don't claim to know much about it.

My question is this: With all the chatter I'm reading regarding officer paychecks, will I get in trouble for naming her as an officer and not paying her a salary?

Sounds like a dumb question now that it's written, but I'm submitting it anyway. You are a KIND bunch, after all...

~donna aka possi

from the long thread above started by BHoffman. In that case the officer in question was
100% shareholder, but only put in a few hours a week for which some remuneration I think we agreed should be paid.

In your case, your daughter is not a shareholder. And since the crux of the matter is
insufficient pay for officers who are shareholders, no problem, esp since she doesn't do anything tangible.

[Possi]

thanks!

That's a relief, because I can't afford her anyway!! =) I feel better now.......