A friend of mine is involved with an organization as an employee but also owns a 5% equity stake in the organization.
The organization is a S-corp. They want to pay 5 members an equal owner draw while maintaining disproportionate equity shares. So imagine 4 members owning a 23.75% stake, while my friend owns just 5%.
The general question here is: can owner draws be paid to any member regardless of equity stake? Also, how will each member's draw be taxed (personal income tax, capital gains)?