Dividend Direct Deposit Election: Fill & Download for Free

There are several legitimate reasons for doing this. The reason for it should be documented for tax and accounting purposes. If there is more than one owner, one owner shouldn’t be able to make deals with the company to the detriment of other owners (e.g. selling the company assets at inflated prices). The tax consequences should be documented immediately, not made up after the fact.Transferring the money from a business account to a personal account may well happen by a the company writing a check and the owner depositing it in his account, or involve direct deposit. Either way, the documentation associated with the transaction can document its purpose.To pay dividends to the owner(s) of the business. Some stockholders may elect direct deposit. This should be reported on a 1099 form.To withdraw capital from the business. If there is more than one owner, this probably requires approval of all the owners, and it may change the percentage of ownership . This changes that owner’s tax basis in the business.To pay owners for their labor, acting in the role of employees. Things like hourly rate or salary are probably laid out in a partnership agreement if there are multiple owners.To reimburse owners for business expenses made on behalf of the company (similar to employee expense reimbursement). This is probably documented in an expense report.For an owner to sell assets to the company (e.g. land, vehicles, equipment, tools, patents, etc.) This is probably documented in bills of sale or invoices.To sell products or services to the company. In this case, the owner is acting as a different business even if it’s not legally set up that way. The owner may, for example, lease land to the company, or manufacture the product the company is selling.Loans from the company to the owner. Loans at below-market rates can result in income for the owner.Repayment of loans from the owner to the company.

If you are a registered owner, you usually get a check or a direct deposit. If you are a beneficial owner (this is the common situation) it goes to your brokerage, and your dividend elections dictate what is done. Either it goes to your cash-equivalent holding or is used to purchase more shares.

Then you would spend approximately $180 + brokerage fees.You would receive a quarterly dividend — right now it’s $0.73 per share, so you’d get $0.73 per quarter, probably deposited directly into your brokerage account.You would be entitled to vote for the Apple board of directors and vote for any other resolutions that were presented to the shareholders to vote on. You would likely not influence any election since you would have only one vote.You might receive the Apple annual report in the mail.If there was a shareholder lawsuit filed against Apple, then you might get some cryptic legal documents in the mail, urging you to fill out the forms, so you could participate in the class action lawsuit.In the extremely unlikely event that Apple were acquired for cash or stock in another company, you would receive the cash or the number of shares in the new company. If you were to receive less than one share in the new company, you would probably then just get cash.If you decided at any point that you didn’t want Apple stock any longer, you would sell the shares for the prevailing price, plus commissions.