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To: Kenneth E. Phillipps who wrote (408219)5/21/2003 3:13:49 PM
From: Neeka  Read Replies (1) | Respond to of 769670
 
Corporations will continue to pay it's employees through salaries and hourly wages. There is only so much they can get away with regarding paying share holders with dividends.

The dividends have to be real.

M



To: Kenneth E. Phillipps who wrote (408219)5/21/2003 3:16:31 PM
From: DuckTapeSunroof  Read Replies (1) | Respond to of 769670
 
No, I'm not 'forgetting about Cisco'....

They pay FAR MORE in stock options, than in restricted stock grants. (And the options don't pay dividends, of course.)

Re: Could a partnership of lawyer, engineers, etc form a corporation and issue stock to the partners and pay compensation in dividends thereby avoiding the dreaded self-employment tax?

>>> Don't see why a 'C' corp. couldn't vest all employees, and pay mostly with dividends... but how would they reward extra performance, meeting sales goals, etc.? More stock would have to be issued (and stock issuance would still be a taxable event.)

>>> I can't see this working for any public company.



To: Kenneth E. Phillipps who wrote (408219)5/21/2003 3:40:38 PM
From: Thomas A Watson  Read Replies (1) | Respond to of 769670
 
Once you form a corp. One is a self employed paid consultant of the coop or an employee of the corp and dividends come from profits of the Corp and the Corp pays taxes on Profits.

Other than changing how all income is allocated to different rates the implication of your proffer are silly and ignorant as usual.

Did that idea called double taxation ever sink in.

Your a lawyer???