The distribution is the company’s payment of the cash, stock, and physical product to its shareholders. And distributions allocations of capital and income throughout the calendar year.
When the corporation earns profits, it can choose to reinvest funds in the business and pay its shareholders’ profits. Shareholders can receive distributions regularly. Such as monthly, quarterly, and annually.
And shareholder distributions are standard with pass-through entities, such as an S Corporation or limited liability company (LLC).
The companies with pass-through taxation are not taxed directly. Instead, taxable company profits it passed through to shareholders.
Also,You can find more helpful resources at popbom.
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