fallendown Posted August 16, 2017 Share Posted August 16, 2017 Yes, i know the title sounds absurd and probably sounds like something a troll would write, but it's 100% true. I'm a partial owner of a S Corp that I helped cofound. (5% ownership). I used to own 40%, but I got cheated out of that because I was stupid and trusted my partner (won't go into that now.) I no longer work there. Now that I'm mostly out, it's obvious that my former partner wants me out 100%. This business does about $2 million to $4 million in software sales each year. Last year, this business did $200,000 profit. That means, if this company distributed this profit as dividends, I should receive around $10,000 and I would have to pay around $2500 to $3000 in taxes on it. If this company decides to "reinvest" this $200,000 into this company rather distribute as dividends, I will have to pay the $2500 to $3000 in taxes in any case. Maybe it's best I was scammed out of most of my shares, because if I owned 40%, I would have to pay around $25,000 instead. My former partner seems to be trying to squeeze me out 100% so he "reinvests" this money by getting BMW "company cars" for himself and his wife. He'll just do a report that he did no distributions, and I'll have little way of know otherwise. I'm just tempted to hand over the remaining 5% to him, although I built up that business over 15 years. But there is a lot of property that is owned by this business. The building is worth around $1.5 million, so if it is sold, I should get around $75,000 for it. I'm just certain he'll find a way to keep that from me when that happens in any case also. Not sure what to do. Your advice? Link to comment Share on other sites More sharing options...
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