Do I still pay salary when closing S-Corp in NJ

c1991sc · #1 (**permalink**) 11-29-2010, 11:14 PM

I am the only share holder of S-Corp, but I will move on to take a permanent job beginning of 2011, but, S-Corp will still receive payments in 2011 from service rendered in 2010. Accounting year is at year end. Should I pay myself salary from S-Corp in 2011 while closing down it down? Or Can I report all 2011 recipts as business income in K-1?

Thanks

c1991sc · #2 (**permalink**) 12-16-2010, 10:13 PM

Quote:

Originally Posted by c1991sc

I am the only share holder of S-Corp, but I will move on to take a permanent job beginning of 2011, but, S-Corp will still receive payments in 2011 from service rendered in 2010. Accounting year is at year end. Should I pay myself salary from S-Corp in 2011 while closing down it down? Or Can I report all 2011 recipts as business income in K-1?

Thanks

The question is that can I not pay myself salary and still claim those receivables in 2011 to be actively managed, so, it will be part of my personal income as normal S-Corp, instead of passively managed, and might need to pay corp tax, before reach to become my personal income, to be taxed again.

Thanks