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S-Corp / Cleaning Business

jasonb
(@jasonb)
New Member Registered

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.

Quote
Topic starter Posted : 25/06/2010 3:36 pm
klen11
(@klen11)
Active Member Registered

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.

Looking to Start a business in Florida?
Looking to Start a business in Texas?
Lucrative economy in these states can benefit your business. Why not expand or start your business now?
Most businesses in these states thrive due to the amount of people in small areas.
Get your piece of the pie now!

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Posted : 16/12/2011 7:24 pm
toomsmith
(@toomsmith)
New Member Registered

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.

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Posted : 14/09/2012 8:59 am
wanbi84
(@wanbi84)
Active Member Registered

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

..

Paradise cruise-Vietnam tours-Hanoi Vietnam

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Posted : 26/10/2012 7:54 pm
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