video1.0<iframe src="https://www.loom.com/embed/4c113a0d7cb849fd90a080c99d414294" frameborder="0" width="1280" height="960" webkitallowfullscreen mozallowfullscreen allowfullscreen></iframe>9601280Loomhttps://www.loom.com9601280https://cdn.loom.com/sessions/thumbnails/4c113a0d7cb849fd90a080c99d414294-d02dbfefbbc111e8.gif77.248This Loom explains when and how to use S-corp status, and warns about common setup mistakes. The speaker notes that an S-corporation can save taxes in the right situation, but people often misunderstand how it works. One major error is electing S-corp status and then not running payroll. Another is paying a compensation amount that feels right instead of determining a reasonable salary, since the IRS expects S-corp owners who work in the business to be paid through payroll before taking distributions.