Self-employment tax is one of the biggest drains on small business owners. It’s 15.3% of your net profit, right off the top, before you even get to income taxes. With an S corporation, you can cut that down significantly by splitting your income between salary and distributions. Only your salary is hit with payroll taxes, while the rest passes through tax-free from FICA. On $75,000 of profit, that can mean saving around $7,500. That’s not just a minor adjustment, it’s a real strategy that keeps