Do I Pay Taxes on Distributions? Taxation of Dividends and Distributions

Dividends are taxable whether taken as cash or reinvested. A dividend rewards shareholders. Distributions settle debts and pay beneficiaries. Unlike a salary, a dividend isn’t predictable. It rewards shareholders if a company does well financially. Both are dispensations of company profits. Distributions go to S corp shareholders. Dividends go to C corp shareholders. However, salary … Read more

Does NC Require an Operating Agreement? Forming an LLC and Creating an Operating Agreement

A written operating agreement legally contracts rules, processes, and provisions when forming a limited liability company (LLC). It differentiates LLCs protecting personal assets, and agreements are required in all fifty states to establish an LLC. To form your LLC, have a written operating agreement. Signed by members, it officially binds them to financial and functional … Read more

What Happens If You Don’t File Annual Report in Massachusetts?

Importance of Filing Annual Reports Regularly An annual report updates company details, summarizes finances, and activities over the past year. It is vital to file reports regularly to comply with laws, ensure good standing, and update details. Failing to file can lead to penalties, revocation, or dissolution. Requirements for Annual Reports An annual report for … Read more