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Partnership: salary for partners?

2 partners, no other employees. Before breakeven neither of us took salaries. Now that we're profitable, what are advantages/disadvantages of partners receiving salaries rather than ad hoc withdrawal of equity?

1 Answer

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  • Anonymous
    1 decade ago
    Favorite Answer

    Both partners can draw monthly salary, as well as they can also draw some part of profit equally at the end of year without disturbing their equity participation, from the working capital.

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