First Year S Corp
2009 was my first year as an S Corp. My company had about 7000 income and I had about 5000 distributions and 10000 invested into the company. (These are all rounded). I am just now finding out about the reasonable salary stipulation for a S Corp. Should I take a portion of the 5000 in distributions as salary or just leave it be and start fresh for 2010. I am worried that zero compensation on the 1120S will cause a red flag.
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