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Sub Chapter S

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Dear Group,

I have a question for those of you who are LLC's filing as Sub

Chapter S Corps. We are planning on incorporating and applying next

year. We are also planning to become the Non Profesional Corp. I

have these specific questions:

1. Salaries - Our accountant advised us to set salary at the fair

market value. How do you determine the fair market value? In

addition, are there red flags for going too low? Currently we are

operating as a sole partnership LLC with profits going to the PT who

is the chief therapist and owner.

2. Are there any transitional problems that we should be addressing

now?

3. How and where do you incorporate? We are located in Monroe,

Michigan.

4. Will our EIN number change?

5. We would also like to set something up so that rent could be paid

by the corp. to the LLC. Is this possible? If so, how?

Feel free to call me or email me directly if you wish,

Thank you for your assistance,

Lori

Holistic Physical Therapy LLC

149 Lincoln Avenue

Monroe, MI 48162

HPTLLC@...

Phone

Fax

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