In general, the owners of a closely held business have several options by which they may withdraw money from the business without selling their interest in the business.[i] For example, an owner may:
- Receive compensation for services rendered to the business (an employee-employer, or other service-provider/service-recipient, relationship);
- Receive rent or royalty for allowing the business to use the owner’s property (a lessor-lessee/licensor-licensee relationship);
- Sell property to the business (a seller-buyer relationship); and
- Borrow money from the business (a debtor-creditor relationship).