C Corps and S Corps, Conceptual problem: Help needed If a person receives a salary of $700,000 from a trust for services rendered as a nonemployee and is thinking about incorporating a C Corp or an S Corp and they contribute that 700,000 to the corporation their basis in the S/C corp is the FMV of the cash, $700,000. If the person decides to pay themselves a salary of 45% of the $700,000 (315,000), can that salary come from the contributed money? Does the corporation still need to have incoming money for services rendered to pay themselves that salary? Does this mean they should not contribute all $700,000. Can you incorporate without contributing money to the S corp or C corp?