Help me understand S-Corps better

[Sean H.]

As it relates to being the sole owner of the "corporation."

So, for my question lets say i hypothetically made 100k for the year. I read that is best keep wages and distributions equal to avoid a red flag from the irs. So, 50k in wages and 50k in distributions.

 I understand wages are taxed with full SE taxes. So income plus 15.3%, but what confuses me is distributions. I have read they are exempt from SE taxes, but how exactly? Would the distributions stay in my S-corp checking account? 

Also, how does it all relate to the corporate federal tax, and in my state (NC) the 2.5% corporate tax?

I guess i'm really trying to understand if i'm really saving on taxes converting my sole proprietorship to an S-corp?