Posted by Brent_IL on January 26, 2002 at 10:41:09:
I am not a lawyer or a CPA; however, regarding your first question, I’ve learned that one of the most important actions one can take regarding corporate benefits is to document your intentions in the minutes of the Corporation before you receive the benefits. Have regular board meetings with your wife, take notes of what you’ve discussed, and write it down in the minutes. Maybe pass a resolution.
You can have the minutes reflect that you have agreed to forego any salary at this time, but, in return, the grateful Board of Directors intends to compensate you with a higher than industry-wide salary and benefit package when the company is profitable.
When you pull money out, a paper trail is necessary for audit.