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The shadiest I've heard of is a loan from a corporation to the person. Paying the intrest only on the loan at a lower percentage than what the taxable portion would have been if it was a draw or salary payout.


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The problem here is that doing what you are saying is illegal. SEC rules apply equally to private, closely held corporations. Doing things along the lines of what you mentioned is self-dealing, which is an improper abuse of the corporate form.

What many of you are forgetting is that if you are filthy rich, unless you are really greedy or a criminal, there's little reason to conduct these schemes. There are a lot of legal ways to structure your finances so that you can reduce your income tax burden, while keeping yourself out of legal trouble.

Additionally, you are forgetting that even if you theoretically have a corporation hold your money and then take it as income later, the money will be taxed twice - first as corporate income/profit, and secondly as personal income. For those of you saying to yourself, "Who is going to ever find out?" don't think that you are going to get away with it. If you have large amounts of income, you will not be able to easily move it around without anybody noticing eventually. Then the IRS will knock on your door, and you will wish you had just paid the tax!