Dividend VS K1

[RJAL]

Three separate but related questions 

As a multi-partnership LLC,that files taxes as an S Corp on form 1120S, is my (1040 since the business doesn't pay tax) tax liability less if I pay out the profit at the end of the year as dividends or receive a K1? 

Furthermore, would the Section 179 Deduction still apply to dividends received as it does to Ordinary Income on a K1?

As an example, the business earns a gross profit of $220,000 a year and the distribution, or profit would be $31,000 after expenses.  I am the only partner, who actively participates, that takes a salary. So this begs the question, would it be a better option to limit my tax liability by paying a salary to the other two non-participating partners? Or to split the 31k by share ownership via 1099DIV or K1?

[halpalms]

s corps don't issue 1099DIV so it's a K-1......if you pay salaries to non-participating partners the corp has to cough up payroll taxes and they add to your expenses.....better off splitting the 31k.

[RJAL]

If I pay taxes on salaries for non-participating partners the tax rate is 15.3 % compared to household income being in the 24% tax bracket. I'm distributed $28k of the 31k  ona K1, on top of my salary of 60k, and my wife's salary is 100k.  Still split it up?