One more message, then I'll shut up

Boyd -

> Is there a tricky way to make a deal if your
> business is a registered LLC, as ours is.
> The I.R.S. views an LLC as a partnership, as
> I'm sure you're aware.

Are you sure the IRS views an LLC as a partnership? Don't you mean they view an LLP as a partnership? An LLC is similar to an S Corp. with all the benefits and none of the disadvantages as far as I can tell. Each state has different laws for LLCs but in Ohio, an LLC is not required to have officers where an S Corp. is. S Corps are allowed to have only 35 shareholders, (I think that was just increased but I'm not sure of the number), and none of those shareholders may be an entity such as another corporation. It must be an individual. With LLCs you can have unlimited shareholders and any entity, such as another LLC, S Corp., C Corp., etc. may own shares in the LLC.

> Maybe being an employee of my own
> corporation is the way I should have
> structured my business. What do you think?

If you are an officer in your company you are automatically an employee of the company as well as a shareholder.

BTW, did you know that you can create an LLC to hold your assets? The short version is that you would place your assets in trust and have the LLC as the beneficiary of the trust. You can read more about this interesting way to protect your assets in Robert Allen's "Multiple Streams of Income."

Please keep in mind that I'm not a corporate attorney. I was involved with an S Corp. as president and one of the shareholders. I've been looking into LLCs as a better way to go. The facts that I stated about LLCs are pretty general but I'm in Ohio so that's what I based this on. Your mileage may vary.

Rick Smith, "The Net Guerrilla"