Apples and oranges. As an employee, you weren't taxed at a different rate. It's just that taxes were withheld at a higher rate, and that comes out in the wash when you did your tax returns. What Point is talking about is how a bonus is treated in an S Corp vs C Corp. And that DOES involve a different amount of tax you would have to pay. Actually it is quite relevant since I simply asked for the process to write myself a distribution instead of writing myself a bonus(which would be taxed heavily). At no point was a bonus referred to as being treated differently in a S Corp vs C Corp. You see I pay myself a salary. In business there are many ways to pull money out of your business. It's not like when I do a $30k job I get 30k. I get paid only my salary. I was asking how to pull a nice chunk of my profits out in the most tax friendly way possible. This IS where there is a difference between a S Corp and a C corp. I didn't want to pay myself a bonus to do so, so I asked a pretty simple harmless question, hoping to get some good feedback from people. And I did.