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Legal Documents

Dividend Resolution

A dividend resolution is to be completed every time your company makes a dividend payment to the shareholders. A dividend payment is a distribution of company profits paid directly to shareholders.

When should I use it?

  • When you would like to pay money directly to one or more shareholders.

Why is it important?

  • 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.

Tips

  • 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.

Legal Agreements for Growing Businesses

Legal agreements that are customized for your business. Includes e-Signatures and storage in your Ownr account.

Ownr™ is not a law firm and does not provide legal advice or legal services. We provide self-help services at your specific direction.

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