Management fee for shared salary?
I have formed an s-corp with a 50% partner. In 9 months we are ready to show a profit. My partner and I have contributed equal amounts of capital, however, we currently work in an office and share employees of a company that I own 100% in. My partner's salary is also currently paid from my company. I have mentioned that at some point in the future we will need to calculate a management fee for the shared employees as well as my partners share of his salary attributable to this startup. This is my third venture and my partner's first. We obtained financing through my existing companies performance and my personal guarantee. During the coarse of this startup my partner allocates roughly 75% of his time to it and 25% to the company that he draws a salary from. This is an accurate request for reimbursement - isn't it????
Public Comments
- go to the http://www.gonghaohui.com
- You guys need to go for Lunch and discuss the best way to share profits and expenses, now that things are becoming more routine.....Don't rush back until you've got a framework to work with...even though it may change (and probably will continue to evolve). Good Luck
