I just started my C-Corporation, and I need Officers. By me being the only Shareholder & Director, I was going place a close friend to be my CEO, my uncle as COO, and my cousin (who's an licensed accountant) as CFO. I want to hire only 4 employees and place them as a Senior VP's of each department. I wanted to place all of them on payroll but wanted to know if I pay them monthly instead of weekly? or split the money in half and pay them the monthly payment within every two weeks? I can't afford to pay my officers and employees hourly, so was wondering if I can pay them a flat fee every two weeks or monthly?
Remember I just started my Corporation, so my Corporation doesn't have a thousand or millions dollars in profits.
You are free to pay weekly, bi-weekly, semi-monthly, monthly or on any other schedule that you want to offer and your employees will accept. Be sure to obtain a taxpayer ID number for the corporation and comply with state and federal withholding requirements. Your cousin should be able to help with this, or you can get the help on a business attorney or CPA.
You haven't identified the other parties involved in this question so I cannot determine whether I may have a conflict in this matter. Should it turn out that I have an attorney-client relationship with any of the other parties, my response to this question will not prevent me from continuing to represent an existing client.
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Patent Application Attorney
As already stated in responses, you can pay your employees as you wish and they agree to. Do not overlook this fact -- if they are your employees, you should have in place documents to justify them as such and you as their employer. Taxes are important and remittance of such are important to the IRS. Make sure your HR issues are covered as well.
This is not a legal advice as I do not have an attorney-client privilege with you. You should retain a lawyer before acting on any generally available advice.
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