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https://www.thebalancesmb.com/what-is-a-reasonable-salary-for-an-s-corporation-officer-397939#:~:text=An%20S%20corporation%20officer%20%28president%2C%20chief%20operating%20officer%2C,each%20of%20these%20roles%20is%20separate.%201%20%EF%BB%BF
https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-employees-shareholders-and-corporate-officers
When corporate officers perform a service for the corporation and receive or are entitled to payments, those payments are considered wages. The fact that an officer is also a shareholder does not change this requirement. Such payments to the corporate officer are treated as wages. Courts have consistently held S corporation officers/shareholders who …
https://www.findlegalforms.com/articles/business/operating-s-corporation/officers-of-an-s-corporation
There may be many levels of corporate officers. Traditionally, there are four main officers: president, vice-president, treasurer, and secretary. Their specific powers should be outlined by the directors in the corporate bylaws and their authority to transact individual business deals should be detailed in board of directors resolutions. In general, the president acts as the corporation’s …
https://www.thebalancesmb.com/what-is-a-reasonable-salary-for-an-s-corporation-officer-397939
An S corporation officer (president, chief operating officer, etc.) is considered an employee and payments they receive for their services as an employee are considered wages. This person is also an owner/shareholder but each of these roles is separate. 1 S Corp Officer Wages Must Be Reasonable
https://www.irs.gov/businesses/small-businesses-self-employed/s-corporations
S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates.
https://www.upcounsel.com/s-corp-titles
https://www.hallkistler.com/s-corporation-officer-must-take-a-salary/
An officer who performs more than minor services for a corporation, and who receives remuneration in any form, is considered an employee and is subject to employment taxes. In recent years, the IRS has become more aggressive in auditing S corporations on this point. One case illustrated some of the issues involved in S corporation compensation.
https://www.irs.gov/pub/irs-news/fs-08-25.pdf
Generally, an officer of a corporation is an employee of the corporation. The fact that an officer is also a shareholder does not change the requirement that payments to the corporate officer be treated as wages. Courts have consistently held that S corporation officer/shareholders who provide more than minor services to their corporation and receive or are entitled to receive …
https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-compensation-and-medical-insurance-issues
The instructions to the Form 1120S, U.S. Income Tax Return for an S Corporation, state "Distributions and other payments by an S corporation to a corporate officer must be treated as wages to the extent the amounts are reasonable compensation for services rendered to …
https://www.aicpa.org/resources/article/s-corporation-reasonable-compensation
Taxpayer arguments that payments by an S corporation to an S shareholder are attributable to his or her status as an officer and shareholder, rather than his or her status as an “employee,” have been rejected by the courts.
https://www.upcounsel.com/s-corporation-liability
To create an S corporation, you must file articles of incorporation with the Secretary of State where you will operate the business. S corporations can issue stock, and like C corporations, they are run by directors, officers, and shareholders. These shareholders enjoy the same liability protections as C corporation shareholders.
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