Iwytn Iwytn
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Asdf Corporation is a Texas-based C-corporation owned by husband and wife, X and Y, who each control ~50% of shares.
Asdf Corporation has a gross annual income of $75,000. Of this, $20,000 remains before paying any salary to X and Y. Can $10,000 be paid to X and $10,000 be paid to Y safely, or is this considered "unreasonable salary" by the IRS?
Also, are there any other pitfalls of having this corporate structure at this low of an income?
X and Y both work full time. Each works approximately 40-90 hours per week, without any other jobs or sources of income.
Asdf Corporation has a gross annual income of $75,000. Of this, $20,000 remains before paying any salary to X and Y. Can $10,000 be paid to X and $10,000 be paid to Y safely, or is this considered "unreasonable salary" by the IRS?
Also, are there any other pitfalls of having this corporate structure at this low of an income?
X and Y both work full time. Each works approximately 40-90 hours per week, without any other jobs or sources of income.