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I presume that under either legal structure, I'm paying income taxes on the entirety of the net profits, so that's a push ? With the LLC, it all shows up as my income on schedule C and is all subject to income taxes (on top of self-employment tax); with an S corp, the salary shows up as salary income (subject to both income and self-employent tax) and the remainder shows up on schedule E (subject to income tax only). Do I have that right ?

Not quite. An employee, which is one hat you'll have in an S-Corp, doesn't pay self-employment tax. His salary is subject to FICA and Medicare taxes, along with unemployment taxes and, perhaps, some sort of workers' comp premiums. The FICA and Medicare are split 50/50 between the employer corp and the employee, with the employer withholding the employee's portion and paying it over to the government. The employer also withholds for income tax based on the employee's W-4. Once the dust settles from all that, profits from a S-Corp flow to the owners' Schedules E, where they are subject only to income tax.

Over in single-member LLC land, the owner isn't an employee and isn't paid a salary. Net profit from the business flows to his Schedule C, where all of it is subject to self-employment tax.

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