I think I'm having a difficult time understanding your logic. An S-Corporation is a passthrough tax entity that doesn't pay tax on a corporate level. The income is paid on the 1040 tax return with a K1. Thus, I don't see how the S-Corp would lead to a tax that is any different than a LLC. Its effectively the same tax treatment in this case except that there is the ability to lower SE Tax.
By paying a reasonable wage to the owner, the net income would be distributed as a dividend which is not self-employment income and thus would be exempt from SE Tax.
Also, wages paid to an owner/employee of an S-Corporation is not required to pay FUTA (unemployment) and etc, thus the only tax that you'd be required to pay is FICA and Medicare just like everyone else.
Clearly, the S Corp has a number of restrictions which ties in well with the fact that an S Corp is a "small corporation" But, for small or new companies that aren't getting major funding, this is a great option.
By paying a reasonable wage to the owner, the net income would be distributed as a dividend which is not self-employment income and thus would be exempt from SE Tax.
Also, wages paid to an owner/employee of an S-Corporation is not required to pay FUTA (unemployment) and etc, thus the only tax that you'd be required to pay is FICA and Medicare just like everyone else.
Clearly, the S Corp has a number of restrictions which ties in well with the fact that an S Corp is a "small corporation" But, for small or new companies that aren't getting major funding, this is a great option.