Dear TaxGuru,

First of all thank you so much in advance for answering my questions.

I and my husband converted our sole-proprietor business into an S-corporation 6 months ago. Our business is about 16 months old and we are still running in losses. Under these circumstances it is hard for us to hire an accountant or a CPA.

1. Right now I am not paying myself any salary, is that okay? How do I pay myself a salary even when I am running in losses? Even if I do pay myself, how do I calculate the payroll taxes myself? Can all this be done at the time of tax filing? If we have to pay ourselves, is it okay if one of us is paid?

2. Converting our business from sole-propreitorship to S-corp seems like a big mistake to us, specially that our business does not have any liability dangers. Do you think we will be better off as sole-proprietors starting next year?

3. I am planning to do my taxes on Turbo business software; what other information do you think I require to go ahead with it?

Thanks again for all your help,

Zak