Option 1 sounds about right. All distributions are going to be tax on your personal income tax and exempt from payroll taxes. Reasonable wages are NOT corpora

Option 1 sounds about right. All distributions are going to be tax on your personal income tax and exempt from payroll taxes. Reasonable wages are NOT corporate distributions, they're simply wages paid by the corporation and deducted as an expense. The payroll taxes would be paid on the amount that you deem wages through the corporation. Please note, payroll taxes are also deductible. hope this helps