You would be an officer in your corp., and officers are required to be paid salary under current tax law. Typically, in your situation, you would be required to have some form of written deferred compensation agreement with minutes approviing the agreement. Incoporating also creates additional costs and fees which you need to determine if you can afford.
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There are ways that you can structure your business in a format that you can have the business as a corp invest in your own business and hire people without eventually create issues in the future with IRS and other agencies.
A lawyer that knows not only how to structure a corp and adjust your present entity can assist you and give you viable and economical solutions for your issue.
Your present legal entity and documents in reference to your issues must be reviewed in order to have a viable and beneficial solution
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Mr. Phillips gives his customarily great answer.
I would add, before creating an entity, make sure a CPA is also on your team to discuss tax issues (unless you are lucky to find someone like Mr. Phillips who adds tax analysis.) Setting up your company online to "save a few bucks" is an error. You will not issue your shares correctly (or membership interests if you determine that an LLC is less advantageous) you will probably not observe corporate formalities, and you won't have someone who knows you and your business to discuss the many law related questions that frequenly arise.
Good luck in you venture.
The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here.
I have to respectfully disagree with my colleague. In the eyes of the IRS, an officer of a corporation is generally an employee, but an officer who performs no services or only minor services, and who neither receives nor is entitled to receive any pay, is not considered an employee. Refer to "Who Are Employees?" in Publication 15-A, Employer's Supplemental Tax Guide (PDF).
In the eyes of the California EDD, corporate officers are considered "statutory employees." This typically comes into play when an officer is trying to avoid payroll taxes and be paid by the corporation as an independent contractor - thus, the EDD had nipped that temptation in the bud.
Further, it is my understanding that the "paying a reasonable wage" requirement is primarily, if not exclusively, for "S" corporations who have chosen to make distributions to their shareholders (owners) or other provide other benefits in lieu of wages - again, primarily to avoid paying employment and payroll taxes.
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