No. of Recommendations: 5
Since you've got an S corp, you've got some flexibility. You've also got some additional issues to consider.

With S corps, the IRS is really looking for you to pay yourself some kind of salary - one reasonable for the work you're doing. Going without a salary at all is a bit risky. That is basically saying that you don't do any work at all for the business. At a bare minimum, you are a director of the corp and need to be paid for that work. You probably are also doing management work - making day-to-day decisions on the properties about rent levels, repairs, maintenance. You might be a bookkeeper, depositing rents and paying bills.

The upshot of all this is that you should be paying yourself something as an employee of the corp. That will be earned income and be the basis for many kinds of retirement plans, from IRA's to 401k plans.

--Peter
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