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    2 Replies Latest reply on Dec 15, 2008 1:14 PM by kevhan

    S Corp Question

    katleo7 Newbie
      Do officers in an S Corp have to own shares? We are a total of 3 officers. I am the President. We have a Vice President, he is an officer for licensing reasons and and has no shares. Then there's a Secretary that doesn't have any shares either. When issuing a distribution to myself, do all of the officers have to receive a distribution also even thought I hold all of the shares?
        • Re: S Corp Question
          Lighthouse24 Ranger

          Officers can be shareholders, but don't have to be. Officers are employees, and must be compensated as such. Corporate income is passed through to the shareholder(s) annually (whether there's a distribution or not).


          Hope that helps. Welcome to the community and best wishes.

          • Re: S Corp Question
            kevhan Adventurer



            One thing to be careful with on a Sub-S corp is that you cannot have unequal distributions with shareholders.... very important because you will violate the tax rules.