How to distribute profit LLC

Making a profit is the goal of any commercial organization, which is currently most often created in the form of a limited liability company (LLC). The operating procedure of the LLC and the distribution of profit are regulated by the Federal Law "On Limited Liability Companies".

Instruction manual

1

In order to distribute the profits of society, it is necessary to hold a general meeting of participants. It can take place once a year, six months or a quarter. The general meeting of the LLC participants takes a decision on determining the part of the profit distributed among the private companies in proportion to their shares. At the same time, it solves two issues: the distribution of all profits received and the distribution of that part of the profits that will be used to pay the participants.

2

The decision on the distribution of the company's profit is made by a majority of the total votes of the meeting participants. If the decision on the distribution of profit cannot be made due to the lack of a quorum or if the participants have not reached an agreement on the issue under consideration, it is impossible to oblige the general meeting to decide on the distribution of profit.

3

So, the profit of a limited liability company is distributed in proportion to the share of each participant in the capital of the enterprise. The charter may establish a different procedure for the distribution of profits when creating a company. But it must be approved by decision of the general meeting of participants unanimously. Changes to the established procedure should also be carried out with the consent of all LLC participants.

4

As for the term for payment of the profit distributed between the participants, it should not exceed 60 days from the date of the decision. If the deadline for the payment of profit is not stipulated by the charter or general meeting of participants, then it is taken equal to 60 days.

5

If during the specified period the participant has not received the share of profit set for him, then he has the right to apply to the company for payment of the set profit within three years from the date of its expiration. The charter of the company may establish a different period for the presentation of this requirement, it must not exceed 5 years. If, during the indicated period, the participant did not apply for payment, the profit shall be restored as part of the retained earnings of the company.