Form W-4 is not filed with anyone and is just a record for the corp payroll files. Yes, you must pay yourself an appropriate wage and withhold taxes. IRS Publication 15 has the charts for you to determine the withholding. Profits left over are taxable to the shareholders regardless of distributing the money. The corp issues you a W2 for your salary and a 1120s-k1 for the profits left over. The profits left over (1120s-k1) go on your 1040 Sch-E, pg2, and are not subject to self-employment taxes. You should file form 1040ES quarterly vouchers to pay in estimated taxes based upon the profits left over that you will be taxed on at year end. As the left over profits are going to be taxed, you might as well take them out anytime you need them as tax-free cash distributions or you can leave them and take them out tax-free years from now.