I have an LLC
that has elected sub-S status in 2010. During 2015, my S-Corp made money for the first time - $16,000 approximately. I am the sole member of the LLC and sole owner of the S corp. I didn't take a salary because:
a) I didn't expect to make money
b) With $78,000 in sales
and $16,000 in profit, there is no way I could pay myself "reasonable compensation
," since "reasonable compensation" in the marketplace doing my job (everything) full time would exceed my gross sales.
Also, I didn't take any money out of the company in 2015.
1) How should I fill out my return
to minimize my chance of an audit
and to survive an audit if it occurs?
2) Is there a way, since I didn't take out the 16K, to leave it in the company so that I don't have to realize the revenue? If so, how would I do this?