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 -- WISPA Wireless List: firstname.lastname@example.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/ -- WISPA Wireless List: email@example.com Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/