Best Tax Strategy for $100k bonus from sale of business
A friend of mine works for a small laundry mat chain that is for sale. His boss agreed to a 20% bonus upon sale because he is an essential employee and is responsible for the growth and success of the business over the past 20 years. My friend ran this business well by himself, did all the repairs, plowing, maintenance, etc.
One location has sold and the closing is scheduled. My friend stands to receive a nice bonus check. He plans to buy one of the laundry mat locations and is creating an S-Corp for the business.
My question is; what is the best tax strategy he can use in receiving this bonus? Should he create the new S-Corp and deposit the bonus into the corporate account? He will need the entire bonus plus more money in order to purchase the one laundry location.
Thank you!