first you read bylaws and read minutes of recent shareholder meeting to verify that majority of all owners voted in favor of rental restriction amendment.

The advantage is that the company is not solely responsible to its shareholders for maximizing profit.

The corporation has "share holders" or "owners" who have voting rights, they vote in the board members to conduct the day to day business and elect officers, in some cases the board may elect officers.

Hi Everyone! It's been a while :) I appreciate any help/responses in advance. I know this is definitely a question to be checked with lawyers/accountants, but it helps to know more before reaching out to them.A busine...

If they are an actual investor, then you would have worked out a partnership/shareholder/operating agreement before undertaking the enterprise.  

In addition, we are considering a self-directed 401k so we can defer up to $53k per shareholder (less contributions from FT jobs) and then reinvest the self-directed 401k funds into LT rentals. 

This is not exactly a self-directed IRA in the way most use the term.The retirement plan is becoming a shareholder of the corporation.  

Sorry to hear about your misfortune To answer your question It's hard to answer with out more information but If you invested with him and if he was a corporation And he folded the corp then you have the wright to go after the share holders as well if his wife is a share hold Which is common file against if she tries to transfer the property right after you file the transfer can be reversed Peoples think they can hide behind a corporation But you can have personal recourse on the share holders but you will have to pay the lawyers fees and try to get them back at judgment

Double taxed on profits then dividends/distributions to shareholders.  

It is my understanding that S-corporations must pay reasonable salary to shareholder-employees so I suggested that they speak with their tax preparer or consult with another CPA or accountant on this topic.