We quite often receive queries from company owners in terms of when and how they can use their company money or assets once business generated profit. If you are a director or shareholder of a company that operates a small business, this article will help you understand when you can take money out of your company or use its assets.
Key points:
• Your company is a separate legal entity from you as a director or shareholder.
• The money the business earns, and its assets do not belong to you, they belong to the company.
• If you take money out of the business or use its money or assets for yourself or your family, it needs to be reported and you must keep appropriate records.
Claire Chang