I know it isn’t your business but the C vs S Corp decision was made for non tax reasons. The firm has to pay for salaries other than the salaries of the shareholders. All the other employees get paid. Insurance. Rent. Office supplies. Taxes. Licenses. Training. Software, Hardware. We are in a practice area where we MUST advance costs for corporate clients. The cash is not available solely for the benefit of the shareholders. It would be REALLY REALLY NICE if we could do that!
I understand that small companies can be gamed and that colleges have to look at small company ownership. I just think there should be a way to separate assets that are illiquid, but available (like real estate) and assets that are liquid but completely unavailable (like cash in a business where the parent does not own a controlling share).
In cases such as ours the income we take from the business is sufficient (in addition to our savings) to pay for college. Between the partners our youngest is the last of 7 to go to college. Life is good. However, many people have businesses that require more assets and do not generate as much income as a law firm. I wish CSS Profile would do a better job of identifying those people.