Re: S Corporation
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No benefit in the area of self employment tax.
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A significant benefit of using an S Corporation is the ability to pay less self employment tax by paying a salary that is something less than the employment tax limits.
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The benefit of a s-corp would not be realized until your income is high enough to overcome the double taxation of corporate and individual income tax on your salary, and the savings you would get with the excess over your salary being taxed at the lower dividend rate instead of the ordinary income rate.
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The appeal of an S-Corp is that the income is not typically subject to double taxation. All ordinary income in an S-Corp is taxed immediately at the shareholder level. S-Corp distributions (assuming sufficient basis, E&P, and AAA) are tax-free.
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Never mind. If you have a substantial amount of income consult a CPA, if not, fill out your Schedule C.
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Yup.
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