I have an LLC formed in Portland, Oregon. I am the only member and do not ever plan on adding more members. Should I elect to have my LLC treated as an S-Corp for my taxes? I am a US citizen living in Europe but I do not qualify for the foreign income exclusion yet. Can anyone give advice that has made this election? I know that as an S-Corp I can pay myself a reasonable salary based on the company’s income and then pay the rest to myself in dividends that are exempt from certain taxes.
If I chose to pay myself 70% of the company’s income as my salary am I required to pay myself the other 30% in dividends or can I leave that 30% in the company’s coffers for legal fees, large chargebacks, and the like? Thank you for reading and with any help provided.