Ask Experts Questions for FREE Help !
Ask
    broit22's Avatar
    broit22 Posts: 1, Reputation: 1
    New Member
     
    #1

    Feb 28, 2008, 08:15 PM
    Quote Originally Posted by Lmnstar
    Is anyone really good in advanced accounting i need some serious help
    Can shareholders in a business who also are w2 from the company take additional money that is not salary and be 1099"d for that income or is that considered a dividend from the company
    MaggieMouse's Avatar
    MaggieMouse Posts: 226, Reputation: 8
    Full Member
     
    #2

    Feb 29, 2008, 08:19 AM
    For the service that a shareholder performs, he can get paid for that, either in the form of W2 or 1099, but dividend is the distribution of profit, has nothing to do with compensation for service performed.

    For instance, Sam works for IBM and has IBM stocks, he gets a salary as an employee, but that is not dividend income.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Shareholders loans [ 1 Answers ]

How exactly do they work? If he takes a withdrawal out of ltd. Company- do I cr bank and dr share holders loan? If he transfers funds from his personal account to business- do I dr bank and cr share holders loan? Thanks! Jeanne

What is Shareholders wealth? [ 2 Answers ]

Hi, I do not understand what maximizing shareholders wealth is? What is it? How does a corporation do it? What are some ways to maximize shareholders wealth? Thanks a lot!:)

Loan to Shareholders [ 3 Answers ]

If owners of an S-Corp take part of their K-1 earnings as a 'Loan to Shareholder' how does that work? I have never heard of this before and an associate of mine was advised by his tax accountant to take part of his annual earnings as a loan. I assume to reduce his personal annual taxable income. ...


View more questions Search