How An S Corporation May Save You Self Employment Taxes

Unlike sole proprietorships or material participants in partnerships, S Corp shareholders are not subject to self employment tax on their ordinary business income.  The Form 1120S K-1 doesn't even have a place to designate self-employment earnings.  Here's the 2104 TurboTax Link on the topic: How An S Corp Can Reduce Your Self Employment Taxes

Instructions for Schedule K-1, Form 1120S