Greetings!
I'm going to file my Articles of Incorporation soon. I plan on creating a Class S corporation. However, the tax portions still seem to baffle me.
I understand how Class S corporations are tax transparent so no corporate taxes are required due to the fact that all profits are sent directly to the shareholders and marked on their personal income tax returns.
Despite this, the literature I have read seems to distinguish between marking business income and salary on personal tax returns. I've had little experience with taxes, especially when it comes to taxes on corporate profits.
Can anyone give me the distinction?
Orignal From: What is the difference between business income and salary?
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