Legal Question in Business Law in Pennsylvania

officer of a corporation and wages

Does an officer of a corporation have to be paid or can they work for free?


Asked on 10/23/00, 3:20 pm

2 Answers from Attorneys

Bruce McCullough Bodell Bove', LLC

Re: officer of a corporation and wages

There is no requirement to pay officers. If the officers have no day-to-day function (think Mom and Pop, Inc., as opposed to General Motors), typically they are not paid. If the officers also are employees, they may well be paid for that work.

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Answered on 11/15/00, 10:37 am
Gerald Hershenson Law Office of Gerald M. Hershenson

Re: officer of a corporation and wages

There is no obligation to pay an officer of a corporation. They can work for free if that is the choice. As a matter of fact in new corporations this is quite common. However, you did not mention whether this corporation is a subchapter S corporation which allows the profits and losses to be transferred to an individual owners tax return. Suggest you consult with your attorney or accountant.

Gerald Hershenson

Luxembourg Corporate Center

Langhorne Pa. 19047

215-579-9390

www.geraldhershenson.com

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Answered on 11/15/00, 8:31 am


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