if you own shares in the corp.how do you deteriem on how much money the corp can pay out or draw out?

Answer 1

I agree with Brian G. If the shares are in a large corporation the directors will determine dividend payout.

Further to Brian's comments, if the owner/creator of a small business incorporates it, it is quite common that the shareholder will make draws from the corporation periodically throughout the year (sometimes labeled as salary or management fees, sometimes just labeled drawings). However, most corporations will have an accountant perform year end services for the corporation and themselves, including adjusting journal entries and corporate and personal tax returns. At that time the accountant will determine how much of the draws will be mgmt fees/salary and how much will be dividend payout based on the most benefical tax planning for the shareholder and corporation.

Answer 2

If you are talking about owning shares of Microsoft, the Board of Directors of Microsoft determines what dividends, if any, it will pay out to shareholders.

If you mean that you are the sole shareholder of a company you started, then you are an employee of that company. Your pay would be a salary, and any dividends paid out to you would be determined by you or your Board of Directors.