S-CORP SALARY AND DISTRIBUTION SPLIT
You Are Paying 15% Tax On Money the IRS Never Required You To
Every dollar you earn as a sole proprietor or single-member LLC is subject to self-employment tax. An S-Corporation splits that income into a salary and a distribution. The distribution is completely exempt from that 15.3%. Most business owners save between $10,000 and $30,000 in the first year alone.


