Keep It Simple Summary Graphic

June 14, 2005 at 08:00 PM
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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