What Is Considered A 'Reasonable Salary' for A Corporation's Officer
60/40 is a simple rule that helps corporation owners determine a reasonable salary for themselves. Divide the business income into two parts, with 60% designated as salary and 40% paid as shareholder distributions.
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Can A Trust Be A Corporate Officer
In the United States, state corporation law uniformly provides that only natural [living] persons may serve as directors of corporations, therefore a trust cannot be a corporate officer. Further, a trust can hold stock for a C-Corporation, but there ...
Can a Trust Start a C-Corporation or S-Corporation
Yes, a trust (with an EIN) can start a C-Corporation, but not an S-Corporation. S-Corporations do not allow trusts these same rights. The trust cannot serve because only a natural [living] person can serve as a corporate officer. Although a private ...
How Does One Transfer Assets Into A Corporation (S-Corp or C-Corp)
One would create a promissory note between one's self personally and the corporation. Then create a payment schedule and an interest rate that is found in the real world (5-10%) and make monthly payments of interest and maybe principal according to ...
Which Corporate Entity Is Right for The Situation?
The following is a brief explanation of considerations to be made in the forming of an LLC, S-Corp or C-Corp. LLC *Suggested for business owners making under $100k annually *It can be thought of as a combination between a partnership and a ...
Can A Trust Be Shareholder for S-Corporation
No. S-Corps are restricted from having a shareholder that is a private irrevocable express trust (i.e. Bulletproof Trust). Only a Testamentary Trust, Voting Trust, Electing Small Business Trust (ESBT) or Qualified Subchapter S Trust (QSST) can be a ...