Quote:
Originally Posted by berettafan
You could've just said 'i need free labor, how do i get it?'. Lot less typing 
You can do profit sharing but it doesn't really have the 'oooh, aaaah' factor as lots of companies do this now and it's 'profit sharing' in name only. I would consider a partnership/LLC w/ all losses allocated to you and x% of profit allocated to the suckers, er i mean employee/owners. It is important that you understand the impact of 'limited partner' vs. 'general partner' or 'managing member' etc. Also consider SE tax and guaranteed payments and how they impact your tax picture.
Coolest setup i've seen so far was LLC where the sucker...damn i'm sorry i mean 'partner', got a very small % of gross (vs. net which can be played with) as a guaranteed payment and he also had the deduction for said gp allocated to him. Net income/loss beyond that was allocated to the real owners. He is NOT a managing member. |
We are an S corp now and follow this loss philosophy, and would need to create a class of stock with certain limits I believe.
I like your last para.