General Question about a 1 person Corporation

[deadseasquirrel]

What is the name of your state? California

I used to have a boss who ran a corporation (Engineering). It was all of me, her, and 2 part-time employees. One thing she did was that she would alter her salary dependent on how much the corporation made, so if the corporation made $50,000, then she would pay herself a $50,000 salary. I was wondering if that was legit, in the sense that the corporation never held anything for itself, as reinvestment I guess. Also I she didn't have a board of directors, stocks, or anything that resembled a corporation really. I guess the weird thing is that it was just so much like a sole proprietorship, in all intents and purposes it was a sole proprietorship, but at some point she incorporated.

Is that legitimate? She never had a board meetings, etc. Also I thought engineering was a business you couldn't incorporate or something. Like a lawyer, or what not, whatever information I can garner is much appreciated.

 

[hexeliebe]

It depends on what kind of Corporation

was involved. A LLC doesn't need a board of directors in some states and in others it does.

Do some homework before proceeding with anything. You can find out what kind of corporation it was by checking with the Secretary of State office in your state (it's on the web) and conducting a search for the corporation name then matching it to the owner's name.