3 ms·

How would this work for someone who is a billionaire by means of illiquid assets like stock in the company they founded?

• zouhair 6y ago
  They will have to sell to pay taxes.
  • malwrar 6y ago
    And slowly lose control over their business? What if they aren't publicly traded?
    • ncallaway 6y ago
      They could also issue dividends from the company to share-holders. This wouldn't weakened control of their ownership interests, but it would reduce the overall size of the company itself.
• ncallaway 6y ago
  They would have a couple of options: They could sell stock—maintaining the total size of the company but losing some control over it, in order to pay taxes. Alternatively, they could reduce the size of the company by having the company issue dividends on the stock to shareholders, in an amount enough to cover taxes.