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How S-Corporation differs from C-Corporation?

Choosing a right entity structure is part of the initial planning and there are always merits and demerits, but that all depends what are your goals. A comparison between a corporation and S Corporation is described below to understand the characteristics of each entity.
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Collingwood   wrote on : Tue May 04th,2010   Back to Article

Do shareholders have to take a salary in an S corp? Can they just take distributions? How about an LLC?

Reply :

Yes, In S-Corporation you are required to withdraw reasonable salary. In LLC answer is "no" members are not required to withdraw salaries.

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