@Carl wrote:
Now why this is set up as an S-Corp is beyond me. I see no sense in it.
I think people do this for the mythical lure of liability protection (hence the corp, or LLC) and make the S-election because they think they can take some of the profits home without paying social security/medicare. But in a business where it is basically all the owner's labor the reasonable salary that must be paid should be very close to the net profit, wiping out the benefit.
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