The salary part will have payroll taxes taken out, in addition to income taxes.
The profit (whether you cash it out or leave it in the business) will flow over to you and you will pay Fed income tax on that just like it was regular income.
You’ll just get the benefit of not paying payroll taxes on the profit part.
The salary part will have payroll taxes taken out, in addition to income taxes.
The profit (whether you cash it out or leave it in the business) will flow over to you and you will pay Fed income tax on that just like it was regular income.
You’ll just get the benefit of not paying payroll taxes on the profit part.