You really need to seek the knowledge of a tax professional in your area that is well versed in S-Corps and the such. Especially if your state taxes personal income. What works for you, may not work for a colleague in the same business, as it depends on specifics. Talking with a professional will allow you to make educated decisions based on the specifics of your situation.
Keep in mind that with an S-Corp there can be a fair amount of never-ending paperwork associated with that organizational structure. It's not all that much really. But it's never ending. Missing a deadline can be costly too.
