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

Apr 22, 2019
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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.


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