I am sole stock holder of a very small C Corp. that for the past few years has only shown income of a few thousand dollars from interest/dividends on retained earnings invested. I have taken officer compensation(salary) every year equal to approximately the interest/dividend income. Corporation has retained earnings of approx. $90,000. which accumulated many years ago when it was active. I would like to dissolve the Corporation. my question: can I declare a cash dividend equal to the amount in retained earnings? or do I have to withdraw as a salary instead? is it a red flag to drain retained earnings via dividend with 0 officer compensation on the final form 1120. thanking you in advance.