Corporate partners salary

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Three people started a company months ago. Agreeing to 1/3 of profits each. Everybody still held their current occupations and worked on the new business when there was time. Now someone needs to work fulltime. Can one of the partners work there full time collect a salary and still get 1/3 of the profits? Is that how it is to work. It is a "S Corporation". Located in Texas.

 

[Tracey]

That is allowed, as long as there's a shareholder/board resolution approving this setup. Talk to a corporate lawyer about how to draft & adopt the appropriate resolutions.

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.