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Originally Posted by berettafan
Whoa there, do NOT create a separate class of stock in an S corp, you'll lose your S election.
In an S you can issue new stock or sell/gift existing. You can't allocate p/l however AND distributions (draws) have to be proportionate to ownership %. Not a good vehicle for the profit sharing thing.
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A limited liability company would be a better vehicle for what I described. It's not hard to switch. There are some advantages to being an LLC, and others for being an S Corp. That's something you might want to look into.