How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Merlo Your Own Question
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
9573734
Type Your Tax Question Here...
Merlo is online now
A new question is answered every 9 seconds

In S Corp, can my husband hire me as an

Resolved Question:

In "S" Corp, can my husband hire me as an employee and pay me salary? If not, what form of business structure would you recommend? LLC vs. S Corp What are pros and cons?
Submitted: 8 years ago.
Category: Tax
Expert:  Merlo replied 8 years ago.

Hello again Bing Ellen,

Yes, your husband can hire you as an employee of his S Corporation and pay you a salary. You can also become one of the shareholders in his S Corporation and be eligible to receive dividends from the S Corporation in addition to your salary. Your salary and your husband's salary would both be subject to federal and state income taxes as well as medicare and social security taxes. However, any dividends you each received would escape the medicare and social security taxes which combined come to 15.3%. That is the chief advantage of having an S Corp.

Thanks !

 

Merlo and other Tax Specialists are ready to help you