The S-Corp is a tax election you make with the IRS for how you want your businesses income taxed. It basically allows you to become a regular employee of your company with a periodic paycheck and W2 at the end of the year at a salary that you determine, and then the extra profit above your salary is distributed to you as owner’s compensation. The main benefit of an S-Corp LLC is that it saves you some of the FICA (Social Security and Medicare) tax vs. being a single member pass-through LLC. There are many pros and cons to the S-Corp approach, and generally we recommend against them, but can discuss your specific situation with you to see if it makes sense.
