Few questions on S corp

[TAX]

Can some one please help me with following questions? These Clients have S corp.
Following questions have surfaced while talking to different clients.

(1) Client: I have another job. Do I still need to take salary from S corp?

(2) Client: How much should I take in salary?
My Answer: You should take reasonable salary. There is no set rule. Just see how much one would get if he or she is working elsewhere doing similar work

(3) Client: My wife has a job and I own S corp. Do I need to take salary?

(4) Clint: My corporation lost money? Do I still need to pay myself?
My answer: Yes. IBM, GM etc. have to pay their employees even if they report losses!
You and your company are different.

(5) I own three "s" corp. Do I need to take salary from each corporation?

(6) I own 10 "S corporations" located in different states. How can I take salary from each crop when I am working only at one corp?

Thanks!

[Unregistered]

(1) Client: I have another job. Do I still need to take salary from S corp?

Answer: YES

(2) Client: How much should I take in salary?
My Answer: You should take reasonable salary. There is no set rule. Just see how much one would get if he or she is working elsewhere doing similar work

Answer: Sound reasonable


(3) Client: My wife has a job and I own S corp. Do I need to take salary?

Answer: Yes


(4) Clint: My corporation lost money? Do I still need to pay myself?
My answer: Yes. IBM, GM etc. have to pay their employees even if they report losses!
You and your company are different.

Answer: If the S/H took any distributions, then I would definitely consider reclassifying them as wages. If no distributions, and given the loss situation, I would probably say no to the wages.


(5) I own three "s" corp. Do I need to take salary from each corporation?

Answer: Yes


(6) I own 10 "S corporations" located in different states. How can I take salary from each crop when I am working only at one corp?

Answer: If the client is TRULY not putting in ANY time in the other corps, then perhaps the client can get away without receiving any wages from those corps. However, it is very unlikely that the single S/H would not be involved in the other corps.

[Unregistered]

The previous post is from Dsi. I am at another computer and haven't logged in.

[Joe Btfsplk]

S Corp

If your S Corp has a profit, you should take a 'reasonable' salary. If the profit is very low, the salary could be very low also. Some people use 50% of pre-salary profit as a guide and that may or may not be acceptable to the IRS.

If the S Corp has a loss you do NOT need to take a salary. If you do you have to pay social security tax on it.

If you have 10 S corps in several states, the it would appear that you must be a passive investor. If you are the sole owner of these S Corps, thoug, it may be questionable as to whether you are passive or not. You may need to study the rules for passive income.