I started a C-Corp and it looks like I will have about 100k of revenue this year. Do I have to be on the payroll or can I pay a large chunk of it (60k) in dividends?
Well no one can tell you how much what you and H. will be next year. You need to talk both to your corporate lawyer and you texted visor
Discuss this with your CPA. There are restrictions on allowable dividends. Also, may be able to still set up simple member 401K/SEP where can fund with up to $40K I believe, if qualify. Check with your accountant. Good news is under new tax law, you'll only be paying 21%!
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Your question involves a number of moving parts - C Corp or S Corp, minimizing payroll taxes and maximizing retirement funds, and dividend versus employment compensation. You should discuss those issues with an experienced Corporate Attorney and CPA to find the best structure for you.
The foregoing discussion does not establish an attorney-client relationship, is qualified by the limited facts presented above, and should not be relied upon as legal advice. To obtain definitive legal advice upon which one can rely necessitates retaining an attorney who is qualified in this particular area of the law.
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