What was the amount of S Corporation Distributions for Buildingstars in 2023?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
n credit, net | - | 327,366 | - | | | | NET INCOME | $ 8,759,493 | $ 8,227,718 | $ 7,513,928 | | |
BUILDINGSTARS INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY Years Ended December 31, 2024, 2023 and 2022
| Common Stock | Paid-In Capital | Retained Earnings | Total | |
|---|---|---|---|---|
| Balance at January 1, 2022 | $ 500 | $ 1,386,511 | $ 4,291,773 | $ 5,678,784 |
| Net Income | - | - | 7,513,928 | 7,513,928 |
| S Corporation Distributions | - | - | (9,788,950) | (9,788,950) |
| Balance at December 31, 2022 | 500 | 1,386,511 | 2,016,751 | 3,403,762 |
| Net Income | - | - | 8,227,718 | 8,227,718 |
| S Corporation Distributions | - | - | (7,314,440) | (7,314,440) |
| Balance at D |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 34–43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the S Corporation distributions for the year ending December 31, 2023, amounted to $7,314,440. This figure reflects the distribution of profits to the shareholders of Buildingstars's S Corporation. These distributions are a key component in understanding the company's financial performance and how profits are allocated.
For a prospective franchisee, understanding S Corporation distributions is crucial because it provides insight into the financial health and profitability of Buildingstars. While these distributions represent money leaving the company, they also indicate that the company is generating profits that can be distributed to its owners. A high distribution amount could be seen as a positive sign, suggesting strong financial performance.
However, it's important to consider these distributions in the context of Buildingstars's overall financial strategy. Franchisees should look at trends over several years to determine if the distribution amounts are consistent and sustainable. It would be prudent for potential franchisees to discuss these figures with Buildingstars to understand the rationale behind the distributions and how they might impact the company's future investments and support for its franchisees.