You can't leave profit in an S-Corp without first paying income taxes on it. The real benefit of S-Corp is to shift the cashflow from earned income (subject to

You can't leave profit in an S-Corp without first paying income taxes on it. The real benefit of S-Corp is to shift the cashflow from earned income (subject to self-employment taxes) to profit distributions (not subject to SE tax). But you pay the same Federal income tax on both. However, whether an S-Corp is worth it financially depends on a lot of factors, including how much you make, what constitutes a reasonable salary, your risk tolerance, and how your state taxes these different forms of income.