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STRATEGY #1:

Restructure Your Existing Business Entities for Income Tax Minimization

SUMMARY DESCRIPTION

We recommend that you restructure your current business and real estate entities, establish several entities to provide better asset

protection and to optimize income tax planning opportunities, as follows:

 First, we recommend you increase your annual salary in Meade Law, LLC

- As an S-Corp the IRS mandates a "reasonable" salary compared to profits.

- There is no black letter rule other than to say it's a grey area. However, with $700k of profit
keeping wages at $50k, there is a more than likely chance of the IRS picking your return for audit and assessing penalties;

 Second, I recommend setting up C-Corp Management Entity to provide management services to your S-Corp;

- Your existing law practice as an S corporation would pay the C corporation a tax-deductible management fee;
- The C corporation can then provide certain tax-deductible fringe benefits including the “Omega Retirement Plan” for each

member.
- As a Service entity under the new Tax Law (aka IRC 199a) your income phases you out of 20% deduction;

By structuring your entity in this manner we will reduce projected $700k profit below the $315k threshold thereby
capturing the 20% deduction.

Please refer the following pages for a Graphic Overview and Tax/Financial Analysis of Strategy #1.