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14 comments

[–] jobes [OP] 1 points (+1|-0)
  1. they pay themselves in stock which does not create a taxable income event

Whenever I have been paid in stock it has always been a taxable event. How would that not be a taxable event for them?

[–] Justintoxicated 1 points (+1|-0)

It depends on it you're receiving options and then exercising (creating taxable income) or if you are just receiving shares directly (not taxable until you sell the shares). Almost all stock comp plans are based on issuing/vesting options.

[–] jobes [OP] 1 points (+1|-0)

With restricted shares that are annually distributed, we had to pay tax before receiving them. You could put cash into your account or otherwise about half were taken as tax.