D
dshlyam
Guest
Hello all,
I wonder if it is possible for a corporation to pay all its profit in form of dividends to shareholders (i.e. the only shareholder is the owner) in order to avoid paying FICA. At the year end shareholders would get 1099-DIV and pay regular income taxes from amount shown.
Please someone advice why this would be impossible. It sounds too good to be true. I spoke to 2 accountants (one is CPA) and they both agreed that it is probably not possible but could not point me out to a particular law applicable.
If it makes any difference the state is New York
TIA
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Daniel Shlyam
I wonder if it is possible for a corporation to pay all its profit in form of dividends to shareholders (i.e. the only shareholder is the owner) in order to avoid paying FICA. At the year end shareholders would get 1099-DIV and pay regular income taxes from amount shown.
Please someone advice why this would be impossible. It sounds too good to be true. I spoke to 2 accountants (one is CPA) and they both agreed that it is probably not possible but could not point me out to a particular law applicable.
If it makes any difference the state is New York
TIA
--
Daniel Shlyam
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