Of course, these are the worst cases. There are many instances when the protection is helpful. And it becomes more and more helpful as you grow and add employees. But in most circumstances insurance is also a good idea. Dividends are paid to shareholders, normally in proportion to the number of shares they own.
Many businesses retain some of the earnings in order to have working capital for the business.
Corporations in which the key employees are also the major shareholders pay little in the way of dividends. Salaries and other forms of compensation receive more favorable tax treatment than dividends. It's only when the IRS would consider the compensation unreasonably large that dividends would be paid. Corporate shares are transferable Shares in a corporation are theoretically transferable. This has a number of consequences.