Do we need to have payroll in C-Corp ?
aquaphile: I've done both: distributions/dividends and payroll.  For years I calculated payroll on my own.  I highly recommend spending the $60/month to use ADP's payroll service.  It pays for itself -- even with a tiny company -- in saved time and automatic form W-2, form 941, form 940, and state unemployment reporting.  Unlike other services I've looked into, ADP also indemnifies you against any mistakes made with the IRS, which is a HUGE selling point.  If you've ever received an IRS penalty notice for a late report, you know what I mean!As a side note: It is disappointing that our government's laws are so burdensome that private companies exist just to help citizens comply with the laws.