1. salary vs. distribution
S corp income eventually will all go to you. The trick is part of it will be in the form of salary, subject to income tax and FICA; and part of it as "distribution", and subject to only income tax but not FICA.
All you are saving under S corp is part of the money as distribution doesn't go to FICA.
There is no set rule of how "salary" and "distribution" is calcuated in your S corp annual income. IRS only requires "reasonable salary", meaning you cann't count 100% of S corp income as distribution thus avoid FICA, so a "reasonable" portion of income must be in salary.
Compare to LLC, ALL income must be subject to income tax and FICA.
2. reitrement plan
Either LLC or S corp can set up (1) SIMPLE IRA, (2) SEP IRA, (3) solo 401K. They allow employer contribution that further saves you tax.
