Cross Hair
Member
What is the name of your state (only U.S. law)? Ohio
I have 10% ownership (40 shares) in a small privately owned business. In the past what we have done for taxes due on profit is bonus ourselves enough to cover the tax. I no longer see myself staying here long term and am afraid of what my tax liability will be for future profits. There is nothing in my contract that would force the company to buy me out if I leave, and really there in no incentive for the other two owners to buy my stock right now, maybe when the economy picks up but not now.
If I keep 10% ownership but am no longer employed here can I defer any future taxes until I can sell my stock or the company sells and I can cash it out?
The other option would be to leave without proper notice which violates my contract and is one of the triggering events that gives the company the right to rescind my stock for $1.00 a share. But the company still could chose not to exercise that option and I would be in the same boat.
So can I defer my tax liability?
Thanks
I have 10% ownership (40 shares) in a small privately owned business. In the past what we have done for taxes due on profit is bonus ourselves enough to cover the tax. I no longer see myself staying here long term and am afraid of what my tax liability will be for future profits. There is nothing in my contract that would force the company to buy me out if I leave, and really there in no incentive for the other two owners to buy my stock right now, maybe when the economy picks up but not now.
If I keep 10% ownership but am no longer employed here can I defer any future taxes until I can sell my stock or the company sells and I can cash it out?
The other option would be to leave without proper notice which violates my contract and is one of the triggering events that gives the company the right to rescind my stock for $1.00 a share. But the company still could chose not to exercise that option and I would be in the same boat.
So can I defer my tax liability?
Thanks