Salary of working partner should be considered as expense on the company ?

i m doing bussiness with my friend. he is only investing and i m working partner. last two years we both have not taken any profit. now since i m thinking of leaving my exixsting job and join my bussiness fulfledge. can i take my salary as per my needs and company status and put it in company expenses. my partner is not very happy with this idea and asking me to take it from my 50% profit monyhly basis.

Answer:
A lot depends on your business structure. Is it an LLC? The monies distributed to the partners would be taxed quarterly. If you have elected to be taxed as an S-Corp, you could actually get a regular paycheck. If you do give yourself a paycheck, you could always take it from your 50% profit. This varies by state too, so I'd check with an accountant.
The correct way to do this is that you both set a salary that the company can afford to pay you both. You pay all of the bills, materials, office expenses, inventory. whatever your monthly bills are. Then you look at your net profit and see what the company can afford to pay you both. Since you are equal partners, it should be the same amount for both of you. It will work out the best if you both take your equal share, and if he doesn't want his have him invest it. This is the only way to pay you and make it a fair deal for both.
Good Luck
God Bless
YES, SALARY OF WORKING PARTNER, IS TO BE TREATED AS EXPENSE. THE AMOUNT, IS TO BE, AS AGREED BY YOUR PARTNER.

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