S corporation shareholder distributions are the earnings by S corporations that are paid out as dividends to shareholders and only taxed at the shareholder level.
The shareholder receives a non-dividend distribution from the S corporation. The shareholder must show they have a sufficient stock basis in order to establish if the payout is non-taxable. The stockholder sells their shares.
Any individual, business, or organization that has stock in a corporation is a shareholder. A shareholder of a firm may own just one share. As residual claimants on a company's profits, shareholders may be subject to capital gains (or losses) and/or dividend payments.
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