yes on withholding, but you can not avoid FICA and Medicare taxes on the wages. I strongly suggest you use a pro the first year. the pro can also give you an idea of what your wages can be to satisfy the IRS. to high and the deduction will be disallowed. to low and the IRS could impute higher salaries which would result in substantial penalties. the iRS says reasonable comp but there is no definition in the code and the tax courts are not in agreement. there may be other items that need special treatment and your lack of knowledge of tax laws for an S Corp puts you at a disadvantage and possible exposure to penalties and interest and loss of some deductions if not dome properly. the pro can also give you insight into record keeping requirements.
