Subchapter S corporation reduce substantially the payroll, or employment taxes, that business owners pay when shareholder salaries get set to a modest level. But you need to be reasonable. The IRS watches S corporation shareholder-employee salaries very, very closely.
Considering the idea of forming an S corporation in California? While you may be able to save lots of money on payroll taxes with an S corporation, you do need a good handle on three, specific to California S corporation issues
An S Corporation delivers three principal advantages for the small business owner. Learn how your small business can benefit from an S Corporation business structure.