What is the name of your state? Oklahoma
Hi everybody,
I’m looking for some advice regarding a business.
15 years ago I started an online affiliate marketing business. The business is set up as an Oklahoma S Corp.
I have 50% ownership and my wife at the time (we are now divorced) owns the other 50%.
When we divorced a few years ago we wanted to keep the company intact since it was a nice revenue stream. However, we both stopped actively working on acquiring new business. We still make money from old business. We receive commission from companies that we referred customers to years ago, somewhat like an indefinite royalty payment.
We have stopped doing any payroll. I feel that would not be appropriate since my ex does nothing and my work amounts to less than 1 hour per month for accounting and bookkeeping tasks. Instead we currently distribute the income 50:50 each month via shareholder distributions.
Our accountant has advised that we really should do paychecks and not only shareholder distribution as to comply with IRS guidelines.
I’d like to see this business eventually getting dissolved rather than continuing to own a business with my ex that nobody really wants to work in. But of course, nobody wants to miss out on those indefinite commission payments either.
What would be an appropriate way to deal with this situation? Continue the S Corp? Doing payroll even though nobody works? Or dissolve the business and maybe form some other type of legal structure to continue receiving the commission payments?
Thanks for any advice.
Hi everybody,
I’m looking for some advice regarding a business.
15 years ago I started an online affiliate marketing business. The business is set up as an Oklahoma S Corp.
I have 50% ownership and my wife at the time (we are now divorced) owns the other 50%.
When we divorced a few years ago we wanted to keep the company intact since it was a nice revenue stream. However, we both stopped actively working on acquiring new business. We still make money from old business. We receive commission from companies that we referred customers to years ago, somewhat like an indefinite royalty payment.
We have stopped doing any payroll. I feel that would not be appropriate since my ex does nothing and my work amounts to less than 1 hour per month for accounting and bookkeeping tasks. Instead we currently distribute the income 50:50 each month via shareholder distributions.
Our accountant has advised that we really should do paychecks and not only shareholder distribution as to comply with IRS guidelines.
I’d like to see this business eventually getting dissolved rather than continuing to own a business with my ex that nobody really wants to work in. But of course, nobody wants to miss out on those indefinite commission payments either.
What would be an appropriate way to deal with this situation? Continue the S Corp? Doing payroll even though nobody works? Or dissolve the business and maybe form some other type of legal structure to continue receiving the commission payments?
Thanks for any advice.
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