Yes, irasmilo, I am pretty sure I am missing something. Let me think out loud here for a minute.Scenario 1.End of year, $10,000 left in company, cash. Sch. K distribution to me $10,000 counts as my income, I pay taxes on it, so I usually write myself a check for that amount. My total in pocket $5000 (say marginal combined 50% State and Federal tax rate - round numbers)Next year I loan the Co. $10,000 to pay lawyers.Total cost: $15,000 (incl tax).Scenario 2.End of year, $10,000 left in company, cash. I leave it there somehow.Next year I pay lawyers with it.Total cost: $10,000.Where am I going wrong? (Probably the bit where the patent guy tries to save money doing his own company taxes... :) but still!Thanks againBF
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