Re: distributing profits from a corp

"Mike Turco" <[EMAIL PROTECTED]> wrote:
> 
> If I own part of a small U.S. corporation that is making money, and I
> don't work directly for that company, where do I get "my share" of the
> profits? My guess is that I can get cash from the dividends on the
> stocks, and technically at least, I can always sell my stocks. Is that
> pretty much it? Other than actually working and earning a paycheck,
> what ways are there for shareholders of a C corp to take out cash?

There is a book on my bookshelf titled "Taking Money out of your 
Corporation" by M. John Storey. It's been a while since I read it, but in 
scanning it I don't find a lot of extra ways of taking significant amounts 
out of the company that you haven't already touched on. Reimbursement for 
expenses related to doing work for the company is one small way. If you 
only have an ownership stake and do no work for the company I think your 
options may be limited - but I'm no expert! Are you on the board of 
directors or hold any officer level position? If so, then you at least have 
some other possible compensation options, including bonuses, retirement 
accounts, health insurance, and the like.

How much control do you have? Perhaps you could arrange for the company to 
"buy back" your stock. (Although I'm not sure if this gains much tax-wise 
over simply paying a dividend.)