#1 ·
Good afternoon,
The company was established back in 2017 as an LLC, and they’ve managed to turn a profit every single year since then.
Every year, 25% of those profits were allocated to account 920—the statutory reserve for increasing capital,
while the rest went straight to the owner. Currently, there is approximately $17 sitting in that 920 account. Since the owner has decided to
dissolve the company, I need to know how to close out this specific account. Should it be moved to income, or can it be paid out to the owner as company profit?
Increasing the capital seems pointless given that the business is being shut down...
Best regards, Alexander Bishop70
The company was established back in 2017 as an LLC, and they’ve managed to turn a profit every single year since then.
Every year, 25% of those profits were allocated to account 920—the statutory reserve for increasing capital,
while the rest went straight to the owner. Currently, there is approximately $17 sitting in that 920 account. Since the owner has decided to
dissolve the company, I need to know how to close out this specific account. Should it be moved to income, or can it be paid out to the owner as company profit?
Increasing the capital seems pointless given that the business is being shut down...
Best regards, Alexander Bishop70