I recently got into a discussion with some friends. We have been talking about setting up a business for a long while now, although nothing has ever come of it so far. Now once again we are very seriously considering registering an S Corp. We would like to reward ourselves through div payments. Can you clarify how this would work out in relation to personal taxes?
I have looked into this quite recently myself actually. Very recently as it happens. So I am afraid I can tell you that these divident payments are taxable in the same way as you would with a C Corp. On your 1040 Sch-B it is taxable... A bit of a shame perhaps.... Keep looking for other ways to make/save money!
