taking profits out of corporation - Posted by Chris

Posted by E.Eka on October 29, 2003 at 09:22:54:

You’d have to declare dividends. The thing is, you’d have to act like a real corporation. Or else the IRS may say that you ‘pierced’ the corporate veil.

Besides the salary that’s all you have. Also remember you may be charge personal holding tax if your C-corp’s generates a large percentage of its income from passive activities. (STocks, bonds, REAL ESTATE)

taking profits out of corporation - Posted by Chris

Posted by Chris on October 29, 2003 at 08:24:53:

I would like to take money out of my c corp without doing so in the form of a salary (to avoid paying all the associated taxes, S.S. etc.). Is there any other way to take money out of my corp? Dividends? How do they work?