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Those distributed profits are called dividends, because the profit is divided among the various shareholders.
If the business is making profits, a percentage of it's profit has to be distributed to shareholders and other firms where it has gotten finance from.
used to service loans use to pay corporate tax set aside as general reserve
Corporations have shareholders that invest in their business and expect a portion of the business's profits in return. Dividend payments are part of the shareholders' returns for investing in a business. Corporations have a choice to either reinvest their profits in shares, or keep a portion of the profits and paying shareholders dividends.
dividends
What financial statement would you analyze to determine if a company distributed any of its profits to its shareholders?
Those distributed profits are called dividends, because the profit is divided among the various shareholders.
Corporate Taxes in the United States are some of the highest in industrialized nations and thus have a huge effect on the returns of shareholders. Lower corporate tax rates would result in higher earnings and profits for the company's shareholders.
Corporate tax refers to a tax levied by various jurisdictions on the profits made by companies or associations. As a general principle, the tax varies substantially between jurisdictions. In particular allowances for capital expenditure and the amount of interest payments that can be deducted from gross profits when working out the tax liability vary substantially. Also, tax rates may vary depending on whether profits have been distributed to shareholders or not. Profits which have been reinvested may not be taxed.
Just because you are a minority owner does not mean that the majority owner(s) can violate the corporate by-laws (or violate state law) and illegally (or improperly) divert profits that should have been distributed to ALL owners/shareholders. It sounds as if you should consult with an attorney skilled in corporate law.
Yes, to the extent of Earnings and Profits, there after it must be considered either return of capital to the extent of the shareholders basis or as long term capital gains.
If the business is making profits, a percentage of it's profit has to be distributed to shareholders and other firms where it has gotten finance from.
Income to the corporation, as a legal "person", is taxable against the corporation. When the treasury pays dividends from its income to its shareholders, the dividend is taxable again as "income" to the shareholders. A "subchapter S-corporation" avoids this by skipping the corporate taxes and directly taxing the shareholders for any corporate income.
used to service loans use to pay corporate tax set aside as general reserve
an order of payment (such as a check payable to a shareholder) in which a dividend is paid
Corporations have shareholders that invest in their business and expect a portion of the business's profits in return. Dividend payments are part of the shareholders' returns for investing in a business. Corporations have a choice to either reinvest their profits in shares, or keep a portion of the profits and paying shareholders dividends.
it is the amount of profit distributed to the shareholders