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If she forms an S corp, she cannot elect to pay herself a “salary” of $10,000 and say that the remaining $90,000 is “distribution” to shareholders
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https://www.addacare.com/navigating-s-corporations-in-california-2024-why/
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If she forms an S corp, she cannot elect to pay herself a “salary” of $10,000 and say that the remaining $90,000 is “distribution” to shareholders