Income and Salary to an S-Corp Owner

The owner of an s-corporation is quickly introduced to some very complicated tax issues.  The s-corporation has “flow-through taxation”.  This means the s-corporation itself generally pays no income taxes.  The s-corporation files its own tax return, but its shareholder owners report and pay the taxes on the owners’ personal tax returns.  But these shareholders may also be required to pay themselves a salary if they are also employees or otherwise perform services for the corporation.  Continue reading “Income and Salary to an S-Corp Owner”