Originally Posted by V_RocKs

C Corp, The only non-passthru entity. It will pay its own taxes. Form 1120 or 1120-A. A C-Corp is going to get taxed less than you would have. So you can deduct all the crap, pay yourself, and then it gets taxed on what is left. Most people leave money in the C Corp that they aren't going to use, this means it gets taxed at the C-Corp rate at not at the personal rate. C-Corp's can also pay their employees with tax-free fringe benefits. Like health insurance, 401K, movie tickets.. etc...

But if you are the only one in the corp (except for the 'friend' who is the other shareholder), and you give yourself benefits, prepare for the IRS to fuck you dry and call you an S-Corp because you are acting like one.