Skip to main content
June 8, 2024
Question

Sub Chapter S

  • June 8, 2024
  • 1 reply
  • 0 views

Can I own 80% of my chapter S corp, yet only take 10% or less of the profit? In other words, can I own the company majority but give the other members most of the profit?

    1 reply

    Employee
    June 8, 2024

    Are you aware that you are required to pay yourself a reasonably salary (wage) if you perform services for the corporation? You need to do so prior to splitting any net profits.

     

    See https://www.irs.gov/pub/irs-news/fs-08-25.pdf