My new CPA says I should file as a corporation???

[DeadMoneyDad]

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Banks arnt crazy about lending money to gamblers.

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that's not true

Many "big banks" like NationPoint don't care at all. Some "small banks" care..but guys like Wells Fargo don't.

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Sub Chapter S corporations are generally designed for family or tightly controled, limited ownership corporations, twenty-five or less shareholders (if this hasn't changed in number only)

So trying to utilize incorporation as a method of avoiding taxes has generally failed I can see the possibility of this being sucessful under the following conditions.

First you are "financed" by a small group of family or other such individuals. While it might be possible to find a bank willing to finance such an enterprise, I find it hard to believe it is a normal or anything other than a remotely logical possibility.

There is nothing stopping anyone from this group from getting bank financing secured by other means of credit or security and thus investing into this enterprise. IMO this is the most likely way to be sucessful in raising reasonable financing.

You can then repay much of your finaincing throught the issuance of various classes of shares if desired to better protect the finaincing individuals as well as distributions to imediate family members like wives and children. Beware the sale and marketability of S-corp shares is highly illiquid.

Fully following the various rules of incorporation and having real "others" with monetary risk might be the reason some have utilized this method of incorporation while others have failed due to the tax avoidance claims.


D$D<-- not a lawyer nor accountant, always consult a proffessional their advice is at least deductable.