"As I see it, your tax guy is not doing what you pay them for and looking out for "your" best interest. Seems to be more interested in lining his own pockets..."
This is what I got out of it, as well. The 'tax guy' is making some extra monies off him by setting up that extra LLC and by complicating the bookkeeping.
As for asking why its an S-Corp, I would assume so that he can save on some SE taxes. Doesn't seem like a bad idea, in my opinion.
