@codad4x wrote:
....if her profit is $100k, as a sole proprietor she would pay $15,300 (15.3%) SE tax, but in an S corp say she takes a salary of $50k with the other $50k in distributions, she only pays $7650 SE tax. Is this correct?
That is not exactly correct since she the S corporation will have to pay her a reasonable salary for services rendered to the corporation.
Considering she provides virtually all of the services to the corporation that result in the corporation being profitable, her salary will (or should) be close to 100% of the profit.
