Travis Colomb: Depends on what kind of corporation. There are 2 types C & S. In a C-Corp you can pay yourself a dividend or a salary. If you are a S-Corp you have to take a reasonable salary and the remaining money you can take as a distribution (not dividend). Word of caution- S-Corp you get taxed for the company's income even if you do not take the money out. Talk to a tax advisor.
Josefine Weekey: The proper way to show a payout in your corporate books is DRAWS, and that is an expense to the company. The owners pay the taxes in their individual tax returns based on the income of the company (called a pass through). Get you CPA to explain it better than that.
Pamela Meno: Pay dividends. Say you have 50% ownership in a company, you would receive half of all the dividends paid. If you are sole owner, you receive 100%. Any corporation can pay a dividend, but their may be restrictions: if you are under legal obligation to pay creditors, they would get a! ny profits out of the company before the owner.
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