You need to supply a better business plan on the profit there bud. I think you are suffering from the "Field of Dreams" syndrome -- 'If you build it, they will come.' Doesn't work that way, unfortunately.
Undoubtedly they have some very good accountants, but the IRS takes a very dim view of this in General. The IRS does not want anyone to be engaged in work without compensation because it ends up cheating the federal government out of income, essentially.
I forget the specifics, but I recall a story from several years ago where a pair of partners started a radio sttation in the midwest, and as there was no money coming in, they did not take a salary in order to help keep the company afloat. On tax fomrs, the company shows that it is in operation and turning a small profit, but has no employees to do the work. So they were audited, and ultimately indicted for tax fraud!
The law may have changed somewhat, but the larger issue is not the minimum wage, but tax evasion, from the IRS standpoint. Of course, then there is the moral standpoint...
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You need to supply a better business plan on the profit there bud. I think you are suffering from the "Field of Dreams" syndrome -- 'If you build it, they will come.' Doesn't work that way, unfortunately.
Undoubtedly they have some very good accountants, but the IRS takes a very dim view of this in General. The IRS does not want anyone to be engaged in work without compensation because it ends up cheating the federal government out of income, essentially. I forget the specifics, but I recall a story from several years ago where a pair of partners started a radio sttation in the midwest, and as there was no money coming in, they did not take a salary in order to help keep the company afloat. On tax fomrs, the company shows that it is in operation and turning a small profit, but has no employees to do the work. So they were audited, and ultimately indicted for tax fraud! The law may have changed somewhat, but the larger issue is not the minimum wage, but tax evasion, from the IRS standpoint. Of course, then there is the moral standpoint...