Lux Investing

Does a one-man company pay dividend if the owner is the only one who has invested money in the business?

PLEASE CAN SOMEONE HELP ME ABOUT THIS QUESTION. I HAVE TO SUBMIT A BUSINESS PLAN AND I NEED THE ABOVE INFORMATION. THANKS.

Public Comments

  1. The answer depends on what the company is and how it does business; i.e., corporation, sole proprietorship, partnership, or limited liability company. If it's not a corporation, you don't pay yourself a salary, you take distributions from the company; i.e., draws. If it's a corporation, you pay yourself a salary and might take additional funds in the form of dividends or draws. How many investors is irrelevant.
  2. Yes it does
  3. A one man company could pay a dividend to the owner, assuming it is a C corporation and the Board of Directors (might also be the same one man) declares a dividend is to be paid.
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