Ask Experts Questions for FREE Help !
    cpmedina's Avatar
    cpmedina Posts: 1, Reputation: 1
    New Member

    Sep 14, 2013, 04:14 PM
    Should I pay for my business partners housing?
    Im in a three person llc partnership(S-Corp) and one of my partners wants us to pay for an apartment for her and her family. I question this because 1.) she isn't the best housekeeper, I can for see us not getting our deposit back if she eventually got her own place. 2.) she wants parts of her salary to not be reported/taxed. I don't want to get to a place of comingling funds. Also, a majority of her salary comes from sales. If her commissions do not cover all her apartment costs one month can we legally not pay her, her standard/regular (non commission based) salary to recoup the costs? We are in California.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man

    Sep 14, 2013, 04:28 PM
    What is the nature of the business. But I would tell her no. That she should keep her personal expenses apart from the business.
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977

    Sep 14, 2013, 09:28 PM
    Im in a three person llc partnership(S-Corp)
    No, It is one of those, not all three. It is either a partnership, a LLC (limited liability company) or a corporation which has elected to be treated as a partnership for tax purposes (a "Subchapter S corporation"). That is like saying you are married but single: an oxymoron.

    No, it would be improper for your company to lease a residential apartment for the use of one of the owners of the company.

    Do not fail to report part of her salary unless you want to get into serious tax problems. In addition, you need to see an accountant to see that you are not in tax problems already. By what you have written, I would be surprised if you are not.

Not your question? Ask your question View similar questions


Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.

Check out some similar questions!

Corporate shares among business partners [ 13 Answers ]

Good morning, Myself and a friend started a business aand incorporated (c corp) in 2007. About 6 months into it we needed to borrow money and did so from my grandma. One of her stipulations was that I own 81% of the corporation. So he and I signed and stamped the shares issuing 19 to him and 81...

Can business Partners Force me non-compete [ 2 Answers ]

I had an online business since 1999, incorporated in 2004 2008 I purchase a company LLC with 2 other individuals that is basically the same type of online business. At the same time this business was purchased, they started using the profit from their shares of the new business to grow many...

Roomates and business partners [ 1 Answers ]

My situation: between jobs and doing odd jobs to survive. My business partner needed a room for about 4 months Oct-Feb, he made an offer of $500.00 per month his schedule cause him to be on the road most of the time. Two months rent was paid (not on time) the last two months he informed...

View more questions Search