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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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Have a scorp selling his shares to individuals, whom will

Customer Question

have a scorp selling his shares to individuals, whom will take operational control immediately, but the shares will not transfer for one year. can we divide the income separately from the ownership per cent%
Submitted: 1 year ago.
Category: Tax
Expert:  Mark Taylor replied 1 year ago.

Hi, my name is Mark. I will be happy to help you with your questions. The income is divided per the ownership of the shares. With a S-Corporation there is no flexibility. You mentioned that the future shareholders are operationally running the business. Instead of allocating the income via K-1, you could accomplish the same thing through compensation to the buyers.