Key Management Investing Many C Corporations offer key individuals the ability to invest at the Corporate level. Dividends paid to a qualifying C Corporation account are 75% tax free to the corporation. If the corporation retains less than $250,000 in their retained earnings account any gain can be taxed at 15%. If these funds are voluntarily contributed by the employee, he may want to complete an agreement with the corporation as a deferred compensation. The employee might want to consider using a Rabbi Trust, etc., to assure proceeds are available.For more information on Key Management Investing, Please contact us.