My questions was to the fact that JRA mentioned he knows at least 3
owners..... to which I asked if it was LLCs or other type of
corporations, since LLCs have different rules. What I mentioned about
it being illegal is for non LLC type of corporations, but for most of
the other types of corporations, while it's possible that it is
illegal for LLCs as well in some states I could understand that the
rules could be relaxed for LLCs as well. As far as the IRS goes i'm
quite positive that it's illegal for tax purposes, in other words it
cannot be counted as a business expense.
The way I understand this:
http://www.irs.gov/businesses/small/article/0,,id=146835,00.html
towards the bottom of the page, it cannot always be used as a business
expense. Correct me if I'm wrong.

On Tue, Jun 17, 2008 at 12:21 PM, Steve Totaro
<[EMAIL PROTECTED]> wrote:
> You are probably confusing corporate tactics to pay less taxes vs
> corporate tactics to protect assets.  The first does provide some
> asset protection but is mainly to pay less taxes.  The second is to
> basically "hide" assets through totally legal LLCs.
>
> Thanks,
> Steve Totaro
>
> On Tue, Jun 17, 2008 at 12:00 PM, C F <[EMAIL PROTECTED]> wrote:
>> LLCs?
>>
>> On 6/16/08, Jay R. Ashworth <[EMAIL PROTECTED]> wrote:
>>> On Sat, Jun 14, 2008 at 11:13:31PM -0400, C F wrote:
>>> > > Happens in the commercial world all the time; it's a common way to "get
>>> > > cash out of the corporation" -- a business's building is owned by the
>>> > > corporation's owners, and rented to the corporation.
>>> >
>>> > This is actually illegal in some states and considered a breach of
>>> > Fiduciary everywhere.
>>>
>>> May be, but I know at least 3 owners of private corporations who are
>>> doing it, and their auditors seem fine with it.  I think that it
>>> matters whether the corporation is public or not...
>>>
>>> Cheers,
>>> -- jra
>>> --
>>> Jay R. Ashworth                   Baylink                      [EMAIL 
>>> PROTECTED]
>>> Designer                     The Things I Think                       RFC 
>>> 2100
>>> Ashworth & Associates     http://baylink.pitas.com                     '87 
>>> e24
>>> St Petersburg FL USA      http://photo.imageinc.us             +1 727 647 
>>> 1274
>>>
>>>             Those who cast the vote decide nothing.
>>>             Those who count the vote decide everything.
>>>               -- (Joseph Stalin)
>>>
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