Yes - unfortunately I'm not a tax expert so rely on people with the formal qualifications to do all of this and seems like a few things slipped between the cracks here - and they were certainly not at the penny end of the cost scale when setting this up - large firms with high rates.
That seems sensible - are you for hire here or know someone?
From you what you said of the loan suggestion Im pretty sure my LLC partner (the guy with the other 50% ownership) handled it this way with his accountants - different state though. I can probably get a copy of his return to see how he handled it - he did not owe tax (well apart from reimbursing the allowed losses he 60% got back) on his.
