Yes. As the previous poster said, double taxation is avoided. You have a choice of paying taxes in the form of a "salary" (income tax you absorb if you are the sole employee) and/or in the form of dividends (paid to yourself if you are the sole shareholder).blade_jones...what exactly do you mean by the fact that S-Corps don't pay taxes until they start paying stuff? How do taxes work in this sense? Say I have X amount of dollars and it's just sitting in the newly opened bank acount for my newly opened production company and it's sitting there and being added to until I have all my ducks in a row, i'm ready to go, and it's time to start renting equipment, flying in cast and or crew for the production...at what point and in what way do I start getting taxed on the money?