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S corporations are generally required to pay reasonable compensation to shareholders/employees who perform services for the corporation (i.e., W-2 employees).
In a partnership, partners may be compensated for services as guaranteed payments and may also be compensated in that manner for additional capital invested, etc.
There are not quite myriad possibilities here, but there are quite a few scenarios where individuals in certain business entities may be compensated using various methods with various designations. Hence, the suggestion that this user contact the PR for further information and clarification.
‎April 24, 2023
8:58 AM
459 Views