My life partner and I opened an S corporation at the start of 2015. My life partner will be employed by the S-corp and we've established a reasonable salary for him. I won't be employed by the S-corp, but I am a shareholder. We will bill our clients periodically and will get paid monthly.
Is there a set period of time for when we can distribute the profit? Meaning, can we split the profits of the company at end of each month or two months? Would the IRS care about this, and should this be something written in the policy of our company? For example: "Every two months, the profits get divided 50/50."
Is it best to pay all expenses before dividing the profits? Example: Company made $100 at end of January. Our expenses were $60. So, 100-60 = $40. We then divide $40 50/50.
We plan to use Schedule K when filing taxes for 2015. I've never filled a Schedule K before, will the profit distributions be reflected on this form?
We might need extra help in 2015, so we plan to hire an additional employee, who will not be a shareholder. Will our tax liability go down by doing this?
Are there certain other things that should be kept in mind to reduce the tax liability?