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What is a Disbursement?Tax Adviser Form

What is a Disbursement?Tax Adviser Form

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it's one of the most important rules when it comes to an S corp is that you have to have equal liquidation and equal distribution rights and that's where people get into trouble with s Corps but you don't have to have equal voting rights and so that's what makes it doable to potentially add your kids to your business if they're in lower tax brackets and you do have to be careful just because you add your kid as an owner to the business doesn't mean that it's always taxed at their tax rate there are certain circumstances where it could still be taxed at your tax rate but it is one of those potential income shifting opportunities

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