California  |  Business Law

Legal Question

Asked on: 5/21/13, 8:36 pm

Does a C-Corp Have to Pay Salary to Sole Owner Working Full-Time?

A person is the only owner, director, and officer of a startup c-corp in California.

He is working full-time on the business, and the profits are growing.

The owner doesn't want to take any money out of the company at the startup stage. Is it legal for the c-corp to retain all profits and not pay any salary or dividend to the owner for a few years?

So another way to ask this question is: is a sole owner of a startup subject to minimum wage requirements?

Thanks.

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