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.
Related Articles
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 ...
How Should An Officer or Trustee's Name Be Written
Typically it is suggested that a trustee have their name written (First Middle Last), but for an officer of a corporation that is not required as the position, company and statutory privileges are all public.