The Google boys' $1 salary.
Different levels of stock.
}}} All of that is tax planning and corporate law.
An S Corp has limitations - both tax and structure.
There is a limit on who can be a stockholder and how many. (Like no
There can only be one kind of stock.
Everyone in an S Corp has to get the same benefits - so if you take
health care, so does every employee.
Minutes and meetings are required annually.
Business plan is a necessity.
Also, losses for 4 years straight for an LLC and S Corp is a flag at the
IRS. Losses indicate a hobby.
BTW, some states don't like the LLC (like California).
The 2 reasons to incorporate is to reduce tax liability and protect
against personal liability (asset protection).
Asset protection and tax strategy are complicated. Many CPA's aren't
equipped to do complex tax work. (They can only pump a 1040). Three good
tax/asset strategists are Sandy Botkin, Lee Phillips, and Lisa Tom.
Make sure that your CPA is willing to go with you to the IRS to defend
your accounting practices. (And I would get that it writing).
WISPA Wireless List: email@example.com