| Note: If it's a C corp you don't have to take salary (iirc only S corps have to declare at least one person taking salary) and you can keep money in the firm (LLCs and LPs aren't structured to do this well), so you don't need to take any money out that you don't need personally. As a general rule, the less money you need to pay yourself, the better. 1) If you turned profit in the same year you made the investment, you can return almost the entire original investment to yourselves with no tax penalty, derisking your individual stakes 2) You can pay dividends which are taxed at a lower rate (you dont have to pay FICA) 3) You can institute a buyback (so that the company buys back outstanding shares at a higher valuation). This is a little sticky because you can't arbitrarily inflate the valuation (the technical term is "arms-length", meaning that it should be a fair value that disinterested parties could find acceptable). The transaction would be seen as capital gains, and you have the flexibility of controlling timing and amounts. 4) Almost everything you can think of is a business expense: - Food (of course) - Cars (oh god there are a ton of deductions related to business vehicles and vehicles used whilst commuting) - Parties (You have to hold shareholder meetings at one point in time ...) Though I imagine this is better discussed over email. |