News & advice
In many small companies, the owners are also the directors, and this gives considerable scope for deciding how profits should be taken out of the company.
The declaration of a dividend has for many years been a strategy adopted by many small businesses. Traditionally, small companies pay salaries to the directors and tend to ignore their second role as shareholders, which entitles them to receive dividends.
Our helpsheet outlines the main considerations for declaring dividends.
November 16, 2020