Definition of Dividend:
A distribution to stockholders of cash or property paid by the corporation out of the corporation’s profits. The payment of dividends typically occurs only with the approval of the corporation’s Board of Directors. Dividend payments are subject to double taxation, unless the corporation is an “S Corporation”.
Today’s Question — Saturday, March 20
Must the board of directors meet and hold meetings?
The corporate protections afforded by operating your business through an LLC or corporation are typically recognized by a court if certain corporate formalities are honored, including recognizing basic corporate governance matters, such as holding regular board of directors meetings, not commingling corporate funds with those of individual stockholders or other businesses, and holding stockholder meetings.
