an entity treated as an S-Corp is far different than a partnership. in an S-Corp you own a certain percentage and he owns a certain percentage. you say 70/30 profits and distributions must be split that way. failure could result in automatic termination of the S-Corp election. however, it is possible for both of you to agree that that $7,000 bought more shares in the corp for you. so that would allow a different allocation. now you no one of the issues of an S-Corp when there are multiple shareholders and not everyone wants to kick in their share when needed. see a lawyer.
