of course, if you own an Scorp, you HAVE to have annual meetings with
minutes and post annual reports to the state.  At least in NJ.

And, Tom's right.  Repayment of loans is a nice way to not pay tax.  NOW,
you can only do that if you've actually loaned the company things.  But if
you're a "working" partner, you're loaning time to the company which needs
to be repaid at a certain rate. (so long as you don't claim expenses like
mileage and other reimbursements - then you HAVE to take a salary.  can't
have the best of both worlds)

-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On
Behalf Of Peter R.
Sent: Friday, December 15, 2006 9:34 AM
To: WISPA General List
Subject: Re: [WISPA] salary

Check with your CPA on that.
The IRS likes to see salary and other activities that represent that your
"company" really is a company and not a tax shelter so that you avoid the
sole proprietor tax schedule.
(It's called piercing the veil -- if you don't have minutes and annual
shareholder meetings and run it like a business, you lose the corporate
shield for tax purposes AND for liability as in civil litigation).

- Peter

Tom DeReggi wrote:

> Zero.  When the CEO is also the primary investor, and the company is 
> an S-corp or LLC, why pay payroll tax, when you can just take a 
> repayment of loan?
> The salary of the CEO can be meaningless unless also disclosed wether 
> they have an equity position or not, and of what caliber.
>
> Tom DeReggi
> RapidDSL & Wireless, Inc
> IntAirNet- Fixed Wireless Broadband

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