RobertG
Expert Alumni

Business & farm

Profits and losses from an S-Corp flow through to the shareholders individual returns and are taxed the same.  

 

Profits from an S-Corp are not subject to SE tax, but if you are paid for consulting work, that income should be reported on a W-2 to yourself, since it is compensation for services, and not really corporate profit.  

 

This is a big issue with the IRS if the income is significant.

 

 

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