Corporate profit distribution, first of all, to comply with the provisions of the company law, at the same time to comply with the articles of association, in accordance with the resolution of the board of directors of the company for distribution. Which must be extracted is the enterprise development fund and public welfare fund, the company's profit after tax to mention 10% of the legal reserve, unless the amount of the reserve has reached half of the company's registered capital. There is also a statutory public welfare fund to be withdrawn. If the previous operating losses, the profits must also be used to make up for the losses, the profits under the can also mention any provident fund, and then to the shareholders for profit distribution.

Of course, you can also set up other extraction projects, profit extraction program for each company is not necessarily the same, but similar. Common extraction program is as follows:

Three people funded the establishment of a limited liability company, the three people are shareholders of the company. Among them, A contributes 21,000 yuan, B contributes 0.6 million yuan, C contributes 0.3 million yuan. So A's shares account for 70% of the company, and A is the controlling shareholder; B's shares account for 20% of the company, and C's shares account for 10% of the company

The company has been in business for a full year, and their company is profitable, and there are profits. These profits are subject to corporate income tax of 17%, and the after-tax profit is $10,000 dollars. This $10,000 is withdrawn 10% = $1,000 to the company's development fund, 10% = $1,000 to the employee's public welfare fund, 10% = $1,000 to the manager's public welfare fund, 10% = $1,000 to the director's gown, and the remaining 60% = $6,000 to the shareholders' dividend, which is distributed according to the proportion of shares held by the shareholders.

The company development fund is used to expand the company's scale in the future, as well as to carry out the company's hardware construction of the special funds. Employee Community Chest is a special fund used to give bonuses or benefits to all company employees. The Manager's Community Chest is a special fund used to pay bonuses to the company's department managers and general managers.

Director's fee is the director's salary, which is not paid monthly but annually. They are not paid until each fiscal year when there is a year-end profit, and if there is no profit at the end of the year then the directors are not paid. Assuming that the 3 shareholders are directors themselves and appoint 2 others as directors, there are 5 directors***. The directors' fees are $1,000 and are divided equally among the 5 directors, with each director getting $200.

A gets a shareholder bonus of $4,200 ($6,000 x 70%), B gets a shareholder bonus of $1,200 ($6,000 x 20%), and C gets a shareholder bonus of $600 ($6,000 x 10%).