@Opus 17 wrote:
If there are additional profits after paying yourself a reasonable salary, you can take that as a distribution.
An S corporation shareholder can take a distribution at any time, regardless of whether or not a salary is paid.
A sole shareholder, such as @Haroon, is taxed on the net profit of the corporation (aka ordinary business income on Line 1 of Schedule K-1 (1120-S). Any salary taken by the shareholder serves to reduce that net profit.
