Hello all,
I am new here! I thought this would be an excellent way to get some good advice. I'm in the process of starting a cleaning services company. I work full-time, so my only time to dedicate to this business would be in the evenings and weekends. I'm willing and able. After some thinking, I've decided to partner with someone who already has a book of business. It's the most viable option given my situation. Here's the story, I already have an s-corp created. Did so a couple years back. I think I have 10,000 total shares. Now, if I partnered with someone, can this be done through an s-corp? I am extremely green as to how this structuring would take place. I was thinking of splitting the profits (when there are profits) and giving my partner a 40% interest in the company. Should we pay each of ourselves a salary? I'm not sure if I could afford to pay myself a salary within the first 6 months, but my partner should certainly get paid a salary since she is bringing over clients. My biggest question is once we do start turning a profit, how often should distributions be paid out? Quarterly? And, how do I manage everything? For example, since we would both be utilizing our homes to run our business, would she have to send me all her business expenses since I would be handling the "books"? I'm just so confused right now!!!
ps: What is the best small business software for stuff like payroll, invoicing, etc etc etc.
Re: S-Corp / Cleaning Business
A lot of your questions are legal and really depend on the state you incorporated in.
The S-Corp is good for taxes but you would really need to speak to an attorney in your state.
Re: S-Corp / Cleaning Business
I think you will need to start own cleaning business and use some accounting software to manage your account detail.
Re: S-Corp / Cleaning Business
Should we pay each of ourselves a salary? I'm not sure if I could afford to pay myself a salary within the first 6 months, but my partner should certainly get paid a salary since she is bringing over clients. My biggest question is once we do start turning a profit, how often should distributions be paid out? Quarterly? And, how do I manage everything?
Wanbi
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