[cd34]

I think, and an accountant should be consulted:

To be a corporation (in Florida and Maryland), you can file with 1 person holding all 4 offices. This is called a Close Corporation. Most states don't allow that and require two officers for the 4 positions.

Because you are a corporation doesn't mean that you have to have two employees. Board members are not necessarily employees. You might need two employees to do certain things like get group Health Insurance. The benefit to paying two employees is that your wife is also earning Social Security, although, you are paying the SelfEmployment penalty twice. This can be a great source of arguments.

If you are a Sole Proprietorship, Partnership or S Corporation, money that you take from the company that is not a payroll check is usually considered draw. The IRS doesn't really state you can do this for a corporation, but, an S corporation isn't really the same as a C Corporation. Since an S corporation flows through to your personal account, that 'draw' is profit anyhow.

Taking money as salary, then taking distributions/dividends is another way to take money out of the company. Dividends are taxed at 15% (depending on a number of factors) rather than the potential 39.6%. This of course assumes that there isn't a better tax-protected use of that money.

If you have a corporation and you don't have a Simple IRA or other qualified plan, do it. I think you can throw $10k into the Simple IRA this year plus the employer match. Paperwork needs to be filed prior to Oct 1st.

Even if you put the money in a few index funds or spdr trackers, with time on your side you should average >12% tax free.