@pzajic wrote:
...If not FICA taxes, I'm assuming the "non-employee" member would pay the self-employment tax on the income distribution which is approximately the same amount as the FICA tax?
No, because this person is not an employee, the distribution would not be subject to self-employment tax - note that this is not treated the same as a partnership since you made an S corporation election.
Again, you should consult with a local tax professional so that you are clear about how the entire operation functions for federal (and state) income tax purposes. Moreover, you will need to set up a payroll system and maintain it.
