How to Structure an S-Corp in California to Minimize Self-Employment Tax on 2026 Distributions
In California, an S‑corp can reduce self‑employment tax because only “reasonable compensation” paid as W‑2 wages is subject to FICA, while the remaining 2026 profits may be distributed outside payroll taxes. This structure is most effective for owner‑operators who can document market‑rate salary, maintain payroll compliance, and separate wages from distributions. This article explains how […]