Hi,

I have been reading about the S Corporation, and one question comes to mind is what exactly is purpose of having the money in the corporation?

Lets say the S corporation made $70K; the owner takes $30K for the wage and distribution of $10K. What about the $30K sitting in the S corporation bank account? Is it just sitting in there? Can this be invested or put in a savings or CD to earn some more money?

What are the consequences if all the $70K is paid to the owner?

How much money must the owner leave in for the corporation bank account?

How are business expenses claimed or reimbursed to the S Corporation and/or owner?

Is there some kind of literatures or guidelines to operate doing S corporation?

It seems that this S Corporation is all about taxing issue; is there a step-by-step of best or correct practices when operating S Corporation?

Thank you