Here's another question perhaps someone can help with. Can a Sub-S vary distribution based on shareholder activity in the company? For example, three equal (1/3) owners of a Sub-S contribute varying levels in the course of a year. I understand we can only have a single stock class and we must first pay ourselves a reasonable wage. Let's say we pay ourselves $50/hour. At the end of the year we have $30,000 dollars to distribute to shareholders. Could our bylaws layout a distribution scenario where $15,000 dollars is split purely based on the shareholder ownership and the remaining $15,000 dollars be based on a combination of shareholder ownership and payroll hours recorded? The second $15K is being used to reward shareholders who put the most effort in to the company over the year. Sort of like variable compensation, but we won't know how much we can vary until we complete the taxes?
