When you would like to pay money directly to one or more shareholders.
You must properly document all payments made by the company to shareholders.
Both the company and the shareholders will use this document for tax reasons.
Get Paid: In small businesses, shareholders have two primary ways to pay themselves: through wages as an employee or through dividends.
Get Advice: Consider speaking with an accountant who can provide advice on the best way to take money out of your company.
Profits: Dividends can only be declared when doing so won’t put your company in financial distress or insolvency.