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How do you record stockholder draws?

Updated: 8/16/2019
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16y ago

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Credit cash, debit distributions (equity account, gets cloed to retained earnings at year end).

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16y ago
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Q: How do you record stockholder draws?
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Where to find stockholder of record dates for specific stocks?

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What is the plural possessive for the word Stockholder?

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I'm not a tax person, but I'll share my experience: stockholder draws are how I pay myself from the profits of my corporation. I have two rolls with my corporation; as CEO, I'm an employee. As MS (Majority-Shareholder), I'm an investor. I can get "paid" with a paycheck every week, and be subject to social security and medicare and income tax witholdings, or I can simply draw on my investment as an investor. So I simply write a check to myself on my corporate account, write "stockholder draw" in the memo line, and deposit it into my personal account. I'm drawing on my share of the profits of the company. As an employee, I've never actually received a single "paycheck." Keep in mind, you'll still need to pay taxes on your income from stockholder draws at the end of the year, which can hit pretty hard.


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Benefit of being a stockholder?

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Is purchase date of a stock the same as stockholder of record date?

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