If the shareholders of a small corp (less than $1 MM in sales) want to take out excess capital, can they do it as a stock repurchase by the Corporation at par (same price as issue price) ? Any tax rules and regulations that need to be taken care of ?Thanks.

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If the shareholders of a small corp (less than $1 MM in sales) want to take out excess capital, can they do it as a stock repurchase by the Corporation at par (same price as issue price) ? Any tax rules and regulations that need to be taken care of ?Thanks.

This is NOT a tax question, but rather a question about either a SEC regulation or investment law.

Recommend you post it in LAW Forum.

A stock repurchase in a closely held corporation is likely to be treated as a dividend. See Code § 302(b).