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if the only shareholders of a sub-s corp are husband and wife do distributions need to be proportionate to ownership or can they be considered as one.

Level 1
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Level 15

I would still keep them proportionate.

Slava Ukraini!
Level 15

I once had an S Corp with 51%/49% husband/wife ownership. They couldn't do the math for the distributions.

We resolved by having the S Corp make the check out to both of them for deposit into their joint checking account.