Giving employees company shares?

[ponderosatree]

I'm thinking of making some of my best workers minority share holders in our company. As is my understanding if I give workers shares and an officer position within our corporation they are exempt from worker comp fees. All our workers have health insurance so they're protected should they get injured. This could potentially save us a lot of money.

Anyone ever done this? There seems to be very few downsides to it.

 

[Tree Slayer]

Sounds like another way to cheat the system to me, what happens when one of your guys gets hurt and is off say a few months you gonna keep paying his salary? I no paying comp sucks but I need to sleep at night. have you ever had anyone hurt on the job.

 

[SRT-Tech]

^ their still covered, they just dont have pay workers comp fees (form what i understand......)

 

[Tree Slayer]

^ their still covered, they just dont have pay workers comp fees (form what i understand......)

Covered by what then? My payroll gets audited every year by W/C I have to pay for everyone on the payroll.I guess you can make them subs but thats just another way of cheating the system. I love the guys who use subs then have them driving there buckets and chip trucks F'ing joke. To me anybody cheating on the comp thing is a HACK.

 

[Tree Wizard]

If you don't pay workmans comp on an employee (or officer) you don' get to collect on WC if injured.

So you give or sell them stock -what happens when they quit or you fire them? How do you redeem their stock? For what price? You need to discuss this idea with an attorney.

 

[BlueRidgeMark]

IYou need to discuss this idea with an attorney.

Yep. Just because your neighbor's brother in law's best friend thinks it's a great idea, doesn't mean that it is.

Corporations, and the laws that go with them, are NOT do-it-yourself propositions. Neither are workman's comp laws. Add the layers of regulations that go with stock transfers, and you are DEFINITELY in "don't try this at home" territory. You don't know what you don't know.

Messing with this kind of stuff on your own, or via one of those "We'll help you incorporate!" companies, is rather like a homeowner taking down his own storm damaged tree that's leaning over the powerlines and his neigbor's house.

Yeah, people do it. And people do it without having a disaster.

Doesn't make it a good idea.

 

[Husky137]

Yep. Just because your neighbor's brother in law's best friend thinks it's a great idea, doesn't mean that it is.

Corporations, and the laws that go with them, are NOT do-it-yourself propositions. Neither are workman's comp laws. Add the layers of regulations that go with stock transfers, and you are DEFINITELY in "don't try this at home" territory. You don't know what you don't know.

Messing with this kind of stuff on your own, or via one of those "We'll help you incorporate!" companies, is rather like a homeowner taking down his own storm damaged tree that's leaning over the powerlines and his neigbor's house.

Yeah, people do it. And people do it without having a disaster.

Doesn't make it a good idea.

What he said!!!

 

[Duck]

Not a great idea in my opinion. I had a company once with minority stockholders. Let me just say NEVER AGAIN. Same thing holds true with a business partner.

You decide to get rid of one of those employees for some reason and you will have a nightmare.

What happens in you give a few employees stock, say 4 of them, in today's society, half will get divorced, then the court says they have to split the stock, now you have their ex-spouses as stockholders also in your company.

Duck
http://www.atreeserviceinc.com