Once you form a corporation, it is not necessary to hire employees or take a salary because you are a C Corporation.
It is a business decision & it depends on various factors.
Profit-generating years, ensure you take a reasonable salary and promptly pay federal & state taxes.
Loss generating years, -ensure you file zero payroll tax returns as you are not able to take a salary. Otherwise, you may be surprised to find a tax bill that has few estimated calculations based on your prior year payroll taxes paid.
*** based on our response posted on quora
Posted In: TaxGo Back