Form Of Organization |
Potential Solution |
Evaluation |
C Corporation Owners |
Split Dollar |
Less advantageous than before; tax leverage decreased |
Executive Bonus |
Probably a good choice |
|
Dividends |
Maybe, depending on tax rates, etc. |
|
100% S Corporation Owners |
Executive Bonus |
Unlikely; Medicare taxability and no income tax advantage |
S Corporation Distributions |
No income tax advantage, but no Medicare Tax |
|
LLC Members |
Distributions of member capital |
Probably the best choice |
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