USA S Corp Distributions, Commissions/Bonuses for multiple equal shareholders

Joined
Apr 22, 2019
Messages
1
Reaction score
0
Country
United States
I am not an accountant and don't have a background in finance, so please interpret what I'm trying to ask as best as possible.

We have an S Corp with two 50% shareholders. 50% is in the form of a family trust where the owners helped provide the capital to get the business up and running. The other 50% handles all sales, marketing and runs the day to day business. I understand distributions need to be equal to the 50% halves. However, is there a way to pay the 50% that handles sales additional bonuses/ commissions based on how sales are going? We already have a small biweekly salary set up for the sales half, but want to be able to include a performance bonus. The rest of what we'd be willing to pay out would be distributed evenly among the 50% halves.

Ideally the payouts would be on a quarterly basis.

I'd appreciate any feedback to know if this makes sense, is possible, and how to go about it.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Members online

No members online now.

Forum statistics

Threads
11,775
Messages
27,839
Members
21,814
Latest member
alea2024

Latest Threads

Top