USA S Corp- Owner Salary

U

UAI

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Hi,

My client is S Corp and have two owners 75% and 25%. The partner who is holing 75% withdraws regular salary but other partner does not withdraw salary but uses company credit card for company as well as for personnel expenses.

My question is if it is advisable that 25% partner should also withdraw salary as he is continuously using Company Credit Card. This means that he is working partner in the company.

Any advice in this regard would be helpful.

Thanks in advance!
 
T

Tyson

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What do you mean by Salary? Are they paying taxes on this "salary"? Are they both employees of the company?

The one using the company credit card, is he using it for personnel expenses or personal expenses?
 
S

Samir

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Yes, need answers to those questions to give a good answer.
 
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