This is one of those few instances where I actually support the IRS and also support the law that's being contemplated.
S corps (and AFAIK LLCs) are supposed to have "pass through" taxation. I think it's fair that all income (whether salary or profit distributions) from S Corp is treated as regular W-2 income.
If you don't care about the simplicity that "pass through" offers, register a C-corp.
S corps (and AFAIK LLCs) are supposed to have "pass through" taxation. I think it's fair that all income (whether salary or profit distributions) from S Corp is treated as regular W-2 income.
If you don't care about the simplicity that "pass through" offers, register a C-corp.