If I own 51% of an S-Corp do I have to take a salary or any income at all? And how will this ownership affect me at tax time?

[jasonrobertestes]

I'm considering taking on a silent partner with perfect credit but this partner wants no income

[TaxGuyBill]

I STRONGLY recommend going to a tax professional to learn how the corporation works.  Doing things wrong can easily cost you thousands of dollars.
<a rel="nofollow" target="_blank" href="http://taxexperts.naea.org/">http://taxexperts.naea.org/</a>

[dmertz · Accepted solution]

An S corporation's profit or loss is passed through to the shareholders for taxation on the shareholders' individual tax returns.  As a 51% shareholder, 51% of the S corporation's net profit or loss would be passed through to the shareholder for reporting on the shareholder's tax return.  The other 49% of net profit or loss would be split proportionately among the other shareholders; all 49% to the other shareholder if there is only one shareholder other than yourself.

Also, see this IRS web page regarding whether or not a shareholder would be considered an employee required to be paid wages.  If a shareholder performs services for the S corporation, the shareholder would be an employee and would also receive a W-2 reporting wages:  https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-employees-shareholders-a...

Since the other shareholder would be a silent partner, presumably you perform services for the S corporation and are required to be paid reasonable wages for those services.