ForumsStarting a Business

Hi

I plan to be an owner(also an employee) operated LLC(with S-corp tax election). I am curious about startup investement for this setup.

plan #1: Invest enough, so that business can pay my first year salary plus operating expenses(business setup, equipments, registration cost, marketing, legal fees, cpa fees) and so forth.

plan #2: Invest bare minimum money for setting up business without drawing any salary unless business is able to pay it. As soon as business is generating enough revenue, it pays employee salary( and therefore payroll/employment/w2 taxes.)

With respect to IRS and local state (franchise) tax perspective - is plan #2 a valid and legal option ?

Thanks
Jim