I would like to suggest that soliciting legal advice (which it is, despite the tax component) from faceless/nameless strangers on open forums on the internet is unwise, as well as dangerous. I would heartily recommend consulting a CPA for this advice. You will not only NOT have to wade through a bazillion contrary (and mostly ill-informed) opinions to find ones you can use, but you will have advice very unlikely to be flat out wrong/illegal.
Yes, it is likely to cost you a hundred bucks or so, but as a small business owner married to an accountant with many years experience in corporate accounting, that would be money well spent just for the peace of mind.
