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https://www.incfile.com/research-topics/s-corporation-info/s-corp-distribution#:~:text=When%20you%20pay%20out%20distributions%2C%20you%20must%20pay,issuance%20or%20purchase%20of%20shares%20in%20the%20business.
https://quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/how-to-record-shareholder-or-corporate-officer-distribution/00/553392
DIstributions are out of company profit but are not a company expense, thus the affect the company retained earnings at year-end and if distributions exceed earings then those distributions are regular income to the recipient. Your entry will be Credit Loan (to return it to 0) and Debit Shareholder Distribution (equity) For further reading
https://www.upcounsel.com/corporate-officer-definition
https://www.henssler.com/c-corporation-distributions/
A distribution in excess of the corporation’s earnings and profits is generally viewed as a nontaxable return of capital to the shareholder. In other words, it is seen as merely a recovery or return of the shareholder’s investment in the corporation. The amount of this distribution first reduces the basis of the shareholder’s stock.
https://www.upcounsel.com/corporate-officer
The IRS considers an officer an employee if he or she works for the company in any capacity. Owner-officers that do not participate in the administration of the business but accept profit distributions are not considered employees. Many states have regulations about who qualifies as …
https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-employees-shareholders-and-corporate-officers
The definition of an employee for FICA (Federal Insurance Contributions Act), FUTA (Federal Unemployment Tax Act) and federal income tax withholding under the Internal Revenue Code include corporate officers. When corporate officers perform a service for the corporation and receive or are entitled to payments, those payments are considered wages. The fact that …
https://www.incfile.com/research-topics/s-corporation-info/s-corp-distribution
S Corporation Distribution Rules When you pay out distributions, you must pay them to owners/corporate officers based on their ownership in the business. This ownership could be set by the operating agreement, or by the issuance or purchase of shares in the business.
https://www.upcounsel.com/corporate-officer-duties
Presiding over the company's annual meeting and all board of directors meetings. Serving as the supervisor or liaison with the corporate executives who, in turn, report back to the board. Acting as the primary spokesperson for the entire organization. Signing documents on behalf of the corporation and the board of directors.
https://www.upcounsel.com/s-corp-shareholder-distributions
S corp shareholder distributions are the earnings by S corporations that are paid out or "passed through" as dividends to shareholders and only taxed at the shareholder level. General Overview of S Corporation Distributions. Unlike a partnership, an S corporation is not subject to personal holding company tax or accumulated earnings tax. When income is earned …
https://www.thebalancesmb.com/how-business-owners-are-paid-by-the-business-397358
Corporation and S corporate officers who are involved in the day-to-day running of a business are considered employees and they must take a salary and employment taxes must be paid on that salary. In addition, S corporation shareholders may take additional distributions of profit from the business.
https://www.fortenberrylaw.com/distributions-c-corporations/
To the extent that a distribution is made from the corporation’s earnings and profits, it is taxed to the shareholder as a dividend. [1] The portion of the distribution that is not considered a dividend is applied first to reduce the shareholder’s basis in the corporation’s stock. [2]
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