I worked as a consultent for a number of years, just doing regular old programming gigs. While I was doing this I did my taxes as a sole-proprietorship. I had to pay marginal tax and self-employment tax. Which added up to about 30% of my income (15% from self-employment and %15 from marginal)
I just found out that if you are an S-Corp, and you are an employee (the sole employee) of an S-Corp any salaries or bonuses that you give yourself are not subject to self-employment tax.
Does that mean that I gave 15% of my income to Uncle Sam that I didn't really need to?