Do we need to have payroll in C-Corp ?
andrewljohnson: No, you don't. I have a C Corp and and no FTEs - just contractors - including myself. We're incorporated in California. I set up the company with legal counsel, at considerable (though thankfully deferred :)) expense. Both my lawyer and banker agree I don't have to have any employees.I don't know about paying dividends - doesn't capital gains get taxed quite heavily? I think the normal route is to pay everyone as a contractor and let them sort out their own taxes.You'll just need to send 1099s to all your contractors - and if you use special electronic payments through a bank like Wells Fargo, that'll take a lot of hassle out of it all.