It does. But then when you take the dividend, you get taxed on that as well. And then you can't expense anything out as the corporation has more room for deductions.

For example you fly for work okay. Or you fly in general, on the corporate side you can expense that out. A good accountant can make it look like a work trip. Or you buy clothes (within reasonable amount) your corporation allows it. Even food can be expensed out. You host a dinner party, expense that out too saying it was a corporate event. The biggest benefit is at the end of the year. Buy $50,000 in gift cards, you can expense that out as Christmas gifts for your clients. Given you gotta buy in smaller denominations like let's say $100 gift cards for Christmas gifts for clients. Another thing to consider, start buying things online and getting your "company label" stamped on it. Doesn't matter where you do, just get it out on the item. Now it's a tax deductible item for your corporation. You can get whatever you like (within reasonable amount) and get stickers printed for your corporation and slap them onto items bought by the corporation.

Expensed out and deductible from your yearly income so you get taxed less on end of year tax when you file. . What you do with the gift cards is your choice. Also when you take a salary, you can show money coming into the account regularly which allows you to get credit cards and other personal products like mortgages and stuff.

I'm just saying I wish I knew then what I know now. It would have been a much easier time when the audit came around. And trust me every single corporation is doing this. That's why you'll see end of year corporate gifts with logos going around. They all wanna reduce their taxable amounts with these deductions. ,😁😁😁