1. If you receive shares in the corporation
, your basis will be what you paid for them on the date of receipt. When you sell them to the buyer, you will have a capital
gain of effectively 20% of the profit, plus 4.35% Michigan state income tax.
2. If you are paid for personal services, instead, you will pay ordinary income tax at your marginal tax rate, which will be 39.6% of every dollar in excess of $400,000. You will also pay 6.2% FICA on the first $113,700, and 1.45% SECA on the entire profit. And, you will pay 4.35% Michigan state income tax.
3. If you move to Nevada, or some other state that has no state income tax, then you will avoid the 4.35% state income tax.
4. If you move outside of the USA, and you are paid for personal services, rather than in stock, then you will avoid all federal tax on the first $97,600, and the 4.35% state sales tax.
5. If you move outside of the USA, and you relinquish your U.S. Citizenship, and you are paid for personal services, then none
of your income is taxable to the federal or state government, because: (1) under IRC 877A, expatriates who relinquish citizenship are obligated for taxes on all of their assets as if liquidated on the day before they relinquish citizenship (but, you won't have any assets from the corporation on the date before you relinquish citizenship); and (2) nonresident aliens are taxed for personal services based upon the place where those services are rendered, and that place will be outside the USA.
BotXXXXX XXXXXne, if you are really
about to make a large fortune on which you could live comfortably for the remainder of your lifetime, then you may want to seriously consider becoming a permanent resident of a foreign nation that has a low or nonexistent personal income tax (e.g., Cayman Islands). You'll be a tourist to the USA for the rest of your life, but you will also avoid all of the taxes that you would ordinarily have had to pay.
That about covers all the creative options. Hope this helps.