Here are two techniques for keeping taxes to a minimum. These payments can include salary, bonuses, fringe benefits, rent for assets owned by you and leased to the corporation and interest on loans from you to the company. If the company's income can be zeroed out, double taxation is no threat. The new business will make money, but you need to maximize cash to finance growth. If you set up as a single-member LLC or S corporation, you'll have to withdraw 39.6 percent of the new venture's income each year just to pay your personal taxes.
Creditors have to satisfy themselves with a 'Charging Order' .
This gives them the rights to any distributions made by the LLC to that particular member, but little else. In such instances, creditors may find themselves with more problems than profits. Since an assignment of the rights of income under a charging order may also mean an assignment of the liability for taxes, the creditor may be given a K-1 form reflecting the taxable income allocated to the charging order . In the real world this may cause the creditor to want to either drop the lawsuit or settle for pennies on the dollar. No matter what the situation, you are always at the mercy of an U.S. Judge.