Tax loophole for LLCs

Loophole tax saver

This tactic may save thousands and avoid audit trouble since shareholder compensation is a HOT IRS audit issue.

  • Determine the reasonableness of shareholder compensation, not too low but as low as reasonably necessary.
  • Important considerations: Distributions, Material Participation & Income characterization.
  • Document well.
Subscribe to The A to Z for LLC's RSS