Non Liquidating Distribution S Corporation California

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Please contact customerservices lexology. There are two ways that a Subchapter S corporation shareholder can dispose of his stock in the company:



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Incorporating your small business creates a new legal entity with rights and responsibilities that are separate and distinct from you, and from any other person who owns a share of the business. Each state's corporate law specifies the requirements for dissolving a corporation.



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A fine line exists between definitions of a corporate liquidation and dissolution. But for tax purposes, the defining line can make a big difference.

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Every owner of a closely-held corporation has certain property rights, arising from his or her status as an owner, that have economic value to the owner. At the inception of the business, the owner may count among these rights the ability to share in the profits generated by the business, whether in the form of compensation or distributions.



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What is LIQUIDATING DISTRIBUTION? What does LIQUIDATING DISTRIBUTION mean?

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