qbteachmt
Level 15
02-15-2025
11:18 AM
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"he doesn't know if his spouse should be an owner or not?"
Just a few points I would use:
Since an S Corp has a payroll requirement for Reasonable Compensation, it partly depends on their operational intent. Will the spouse be working as an employee of the business? And you would want to know your State rules for common law or community property, for the shares of ownership. Was he going to be a sole shareholder?
And as has been pointed out: why are they doing this? Who gave them some guidance for it, and is it even a thing to do? Or, was that from TikTok?
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Don't yell at us; we're volunteers