I'm a brand new LLC and I would like my tax classification…

Here is some info:

http://www.accupay.com/_paydays/2012/May/S%20Corp%20Pays%20Zero%20Salary%20to%20Owner_050312.pdf

If you do not have the money to pay a salary, then I would argue that it is not reasonable.

So, where does that leave the start

-up S Corps that earn little or no income or

maybe even incur a loss? Do these S Corps still have to pay owner

-employees a

minimal reasonable salary?

The short answer is "no", as long as the S Corp m

akes

no distribution to the owner

-employee to avoid payroll taxes. The reality is that

the IRS cannot require a business to pay its employees a minimum salary. In a

recent court case involving an S Corp owner-

employee, the IRS stipulated to the

court that it did not have the authority to require the corporation to pay the sole

shareholder

-employee any particular minimum employee salary before it could pay

him distributions.

You would need to recapture the depreciation:

http://www.thetaxadviser.com/issues/2014/jun/hennig-june2014.html

Leasing could be an option. The IRS scrutinizes related party transactions.

http://www.bizfilings.com/toolkit/sbg/tax-info/fed-taxes/expenses-related-to-home-office-are-deductible.aspx

Thanks for the accept.

http://cpaonfire.com/tax-saving-strategies-for-entrepreneurs-part-i-rent-your-home-to-your-business/

http://www.amerilawyer.com/home_office.htm

Thank you for the accept. Good luck with the business.