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Thu 25 Mar, 2004 11:26 pm
The company that I work for is in the process of converting into an S-Corporation. Since I work nights and don't have much contact with the management I don't know much about it. But from what I hear, they are doing it so that they can legally buy out the stock holders that aren't a part of the company ESOP (Employee Stock Ownership Plan) They are saying that this will be great for employees. Their goal is to make us 100% employee owned. But I don't understand why you have to be an S-Corporation to do this.
I would like to hear an outside opinion about what an S-corporation is and what are the advantages and disadvantages of working for one?
Not sure, but check out
this link.
Quote:The S corporation is a form of business ownership in which the corporation does not pay tax on its earnings. Instead, owners of an S corporation pay tax on their proportionate share of the company's earnings at their own individual tax rates. S corporations often pay a distribution to these owners equal to the amount of tax they owe. When owners of an S corporation sell their ownership interest, they pay capital gains taxes on the gain, but the gain is adjusted upwards for any interim distributions they have received and decreased by any allocations of earnings on which they paid taxes. S corporations allow owners to avoid the double taxation on corporate earnings that applies to C corporations (the company pays taxes on profits; the owners pay taxes when the profits are distributed). Top C corporation tax rates are marginally lower than top individual rates, however, and 2%-or-more owners in an S corporation must include fringe benefits as taxable income. S corporations can only have one class of stock and no more than 75 owners.
Much more at the link provided.
Ah, the power of google.
Turner_727 wrote:S corporations can only have one class of stock and no more than 75 owners.
That does help, thanks. But one thing that doesn't make sense is that an S-Corporation can't have more than 75 owners. But this company is employee owned so it has over 7,000 owners... I guess I will have to ask my manager about that one.
Guess so. Sorry, I didn't read much about the answer except for to make sure it answered your question. Technically, at least. How it affects you, you'll have to ask someone who knows better than I. (ain't my grammer wonderful?
)
are we talking bout a grocery chain?
husker wrote:are we talking bout a grocery chain?
As a matter of fact yes. Are we co-workers? I'm trying not to mention the company name because I don't know what the policy about mentioning it on the internet would be.
no but based on where you are - I have a pretty good bet about this company.
well
there is
Albertsons
Tidymans
Safeway
Rosaures
the biggies in the area
husker wrote:no but based on where you are - I have a pretty good bet about this company.
Ah, well I've only been here 5 months. Still on my probationary period. I work in the Computer room. It's a great place to work. I just wish I could get more info in this S-Corporation change but being a month shy of being vested I don't get told anything.
Turner_727 wrote:3rd shift operator?
Yep, all night long. Even as we speak :wink:
Me too. . . dying breed, we are.
So, what system do you use over there? IBM? VAX? PC?
Turner_727 wrote:Me too. . . dying breed, we are.
So, what system do you use over there? IBM? VAX? PC?
It's an ISeries (AS/400). Using software that they wrote themselves. So not only do I get to be an operator but I get to be a Beta tester too. It keeps me busy but most of the time it's pretty quiet. Thank got they let me play on the internet. Id go crazy otherwise. They give Operators here the job of doing Order Entry so that ads a little more excitement. Are you an Operator for a grocery chain? I don't work for Alberssons but their computer operation is right next door to ours. They have a huge operation and about 6 people on the night shift over there. State of the art operation too. Our operation is only about 3 I series machines and 50 stores.
Nope, I work for a hospital chain. Remember that guy in CO last year who cut his arm off after an avalanche trapped him? He went to the hosptial that we're the System Office for. We're using PCs/Windows servers. My last operations job was with a risk assessment company, and I got to send out transmissions all night long on VAX mainframes. That job there was a lot more to do than here. But here I get to suft the 'net, and the pay's better. So it works out.
I remember that story. That was crazy! Though I imagine the pay is a lot better working in a hospital computer room. We won't go there though
Not much better, I'm sure. But then, I'm too embarrased to 'pull it out and measure it.'
Let's just say, for the area I'm in, I'm under the posted 'average'. But then, I've never seen the guy's who make 'average'.
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