Our company has 3 partners. Say A, B and C. A has 51% shares, B has 20% and C has 29%. Now if we share the profit as A=51%, B = 29% and C=20% then would there be any inquiry from IRS. All partners OK with it but is IRS ?
2006-10-17 09:31:36 · 1 answers · asked by MDVA 1 in Business & Finance ➔ Other - Business & Finance
the IRS should not have a problem with that as long as all of the company's earnings have been properly accounted for. (no fraud, personal expenses run thru the company, etc.)
if your partnership agreement calls for that percentage, each of the partners will have to claim their share of income on their own personal tax returns.
if you are an S-corp, you will receive a schedule K-1 for your percentage of the company's profit
if you are a C-corp, your company will pay taxes to the IRS as a separate entity.
2006-10-17 09:41:48 · answer #1 · answered by loveholio 5 · 0⤊ 0⤋