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Hi Badger:


Sorry for the confusion. I'm definately an S-Corp.

You said: "then the corp pays no tax (at least not at the federal level). Any remainderman net income of an "S" corp. should "flow-through" to you on a Schedule K-1 thus: creating ordinary income for you to recognize; but no employee wages on which FICA/Medicare tax is due."

Is it possible then to take $0.0 as "income" (and avoid all corporate payroll tax on me)and have that included as "flow through", thereby paying only personal income tax and no payroll tax on my income?

The reason I'm confused is that my accountant suggested I go on the payroll to generate a W-2. By doing this, the corporation pays PAYROLL tax on money the corporation pays me. If I didn't go on payroll and took all the flow thru as income, I'd only pay income tax and not payroll tax. What am I missing here?

Thanks for your help Badger!

Regards,

Tayls...
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