| Your CPA is correct when he says that you as an actively participating shareholder are required to pay Self-Employment taxes on the so called "Net income that is reported on K-1 from your LLC.
The S corporation K-1 is different from that of the LLC because the share of the profits reported on the K-1 is generally not subject to S/E Taxes. Although, this is a distinct advantage of the S Corporation, this advantage may be very short-lived as Congress is taking a closer look at equalizing this treatment. | 
