Quote: (02-14-2014 03:26 PM)Harvey Specter Wrote:
Quote: (02-14-2014 03:19 PM)RX2 Wrote:
Quote: (02-14-2014 02:09 PM)Harvey Specter Wrote:
An attorney gave you this advice? This is not good advice and it could possibly cost you big if you were ever audited. If that is advice that you paid for I would get a new attorney or CPA.
Yes, my attorney/CPA gave me that advice.
I can see where if you're doing a low salary / high dividend split could trigger red flags and in case get you audited. Haven't had any issues so, I'll keep you updated I guess. Everything has been done, recorded and all that so honestly I'm not concerned. We shall see.
Do whatever you want, you aren't my client so it makes no difference to me. I am just telling you that you got bad advise, a google search will tell you the same thing.
Yeah I'd personally be worried also, but it's up to you. If there isn't a lot of money flowing through, maybe you'll never get audited.
What some of the posters did say here though rings true - LLC's are much more flexible and S-Corps are practically archaic. There are reasons you would want to use both though (EX: you would never use an S-Corp to hold investments)