You can also pay yourself back via salary, subject to payroll taxes.  

If you're non-accredited investor, then you can only be presented deals if:1) the "presenter" has pre-existing relationships with youAND2) can identify you as sophisticated via SEC definition. 

So depending on what the deal structure is going to be, you may need to qualify your investors as accredited and/or sophisticated. 

And now he bleeds you dry on payroll hours.Employees will bleed you dry if you aren't smart enough to keep them on track and and efficient.Most of the worst guys out there i have hired have "been doing this 30 years...."

This is why you ask lawyers and attorney a specific tax question, they always say it depends as there are so many variables C Corp S Corp Profit 200,000.00 200,000.00 Wages (80,000.00) (120,000.00) Employment Tax (6,160.00) (18,480.00) I might be off by about 1-2%, too lazy to search Pre tax/distribution amt 113,840.00 41,520.00 * Held back 20K for next year Corproate Tax (23,906.40)   Dividends 69,933.60 * Held back 20K for next year       Taxes on distribution (13,986.72) (16,608.00) *assuming 40% income tax level, 20% on QD Income Tax on Payroll (38,160.00) (48,000.00) *assuming 40% income tax level, C corp you have to pay PR tax at personal level Total Taxes Paid (82,213.12) (83,088.00)  I still do not know how you can split your profit with your partner without some sort of LLC or partnership agreement. 

This will help speed along the process and you will look like a sophisticated investor.

All MF participants should be sophisticated about how it all works.  

Knowing each of their strengths and weaknesses will really go a long way understanding a deal and when speaking with more sophisticated investors.

Under 506(b) you can raise capital from both accredited and sophisticated investors (up to 35 sophisticated investors), but the catch is you cannot solicit investors and can only raise capital from investors with whom you can demonstrate a substantive pre-existing relationship.

A 1.5% decline in non-farm payroll employment. 5.