Facts

Henry and Heide own an S corporation 50-50. For more than five years, the corporation has operated a successful $10 million-a-year restaurant.

Henry, Heide, and Harry formed a new S corporation that started a new restaurant in June 2021. The ownership is 35 percent for Henry, 35 percent for Heide, and 30 percent for Harry.

During the four months of June through September of 2021, the new restaurant had gross receipts of $300,000. During the quarter ending December 31, 2021, ... Log in to view full article.