🔑 How Shareholders Get Money Out of a Closely Held Corporation

Closely held corporations often generate confusion about one basic question: How do shareholders actually get money out of the company?

Unlike partnerships or LLCs, shareholders cannot simply withdraw funds at will. Every transfer of value from the corporation to a shareholder must fit within a legally recognized category—and the classification often determines both tax treatment and fiduciary consequences.

This post walks through the principal mechanisms by which shareholders receive money from a closely held corporation, why those distinctions matter, and where disputes commonly arise.