Here is an interesting question from one of our students. I'll do my best to answer it with the information I have. That said, it's always best in a complicated situation like this to sit down directly with a tax advisor and go over the complete set of facts and circumstances with your advisor so you can get a more complete and comprehensive answer.

Q: Hello Tom, I am in the process of closing a rather large deal, and my commission with be 6-8 figures maybe more. I do have 2 LLC’s and was wondering how much of a Red Flag would be raised to Home Land security if I first had it brought directly into my business account here in the US? Secondly since it is and LLC “C” corp. what will be my tax ramifications if I did this all at once? All monies were legally earned, and not earned through drug sale, money laundering or anything what so ever that is illegal.

A: First, I'm glad to hear you aren't doing anything illegal. You can always receive income into a U.S. company from whatever source without raising any flags so long as it is not cash you are depositing and you report everything properly to the IRS on your tax returns.

Your tax effect will be a very large tax at the C corp level and then a second tax when you take it out as a dividend. This is why I don't like C corp's as the entity to use for a primary business. I much prefer to see your primary business taxed as either a partnership or an S corporation so you don't have a double tax issue.

For more on this, go to http://www.provisionwealth.com/products and click on the school of tax strategy. Go into the product, "Making the Most of My C Corp." Then, call our office at 866,467.5809 to make an appointment with one of my partners who can help you determine the absolute best way to handle this transaction.

Warmest regards,

Tom