Exactly backwards<p>S corp:<p>* reasonable salary<p>* only pay payroll tax on salary<p>* all income taxed at personal income rates no matter if distributed or not<p>* income above salary not subject to additional medicare tax or passive income tax<p>C corp:<p>* reasonable salary + bonuses + perks<p>* remaining income taxed at corporate rates, can remain in business as retained earnings<p>* distributed non-salary earnings taxed again at personal income rates<p>Disregarded&#x2F;partnership LLC<p>* No salary<p>* All income taxed at personal income rates<p>* Simpler to operate + less restrictions than S corp<p>* Can make sense if you&#x27;re going to pay yourself more than the Social Security wage base anyway.