Does anyone have any advice regarding handling their bonuses and royalties? I am considering incorporation with my 2 adult children. Would this be advisable from the standpoint of taxes and general protection of the property? I don't have much acreage but looking at the long haul am thinking this would be a good thing. What do you know of this type of legality?

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Thanks ...this was my thinking as well. They royalties might not be much but then again they could. Thanks again.
Thanks. I will.
My mother recently incorporated her assets (monetary, royalty interest and property) into an LLC with the three of us. There are advantages from the both the tax and asset protection perspective. She holds the controlling interest at 70% and we each have a 10% stake. We worked with our attorney and CPA to get it setup. I think it's a great thing.
Be very careful about incorporating. I believe that you can end up paying taxes twice. Once when the corporation gets the money, then again when you get the money as an individual. There may be ways to get around this.

Remember that the CPA and other advisers have a vested interest in setting up things like this because it generates fees for them. That doesn't mean they give you wrong advice, but you should have a degree of skepticism. Take the effort to get at least a rudimentary understanding of the way the taxes work so you don't get an Enron like "tax benefit" that actually evaporates when you do the final accounting years later.
no correction necessary. I prefer Sub S; but that's my personal choice
Hardage, you may well be right. I'm just pointing out that you have to do incorporation right or you can make things worse.

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