S-Corporation with income during part of the year Dear TaxGuru,
Thanks for the useful info on the site. I read through several posts but I have little different situation.
I have a Florida LLC and elected to be taxed as S-corp for federal purposes. I understand that all the rules for S-corp would apply to me for federal tax purposes.
I put myself on the payroll and paid $5000 per month salary and paid federal and unemployment taxes. I had income till June of this year and my client don't need my services anymore. I moved on to a full time job (W-2) with another company and my LLC/S-corp has no income. My question is do I still need to continue to pay $5000/month for myself?
1. Can I just stop the payroll since I don't have any income coming in?
2. How do I show this on quarterly filings to IRS?
3. I was running my payroll myself with quick books online.
4. I still have money left in the LLC/S-corp account which I plan to pay myself as a distribution end of the year.
5. Can I continue to run payroll at a lower salary or reduced hours since my LLC/S-corp doesn't take much of my time anymore and I don't work for client anymore?
Please provide some thoughts on my situation. Appreciate your help! |