Someone who owns all or part of an S-corporation is called a shareholder. If you are the owner of a partnership, we call you a partner. Really they are the same type of concept, just depends on what style business they own.
Who Is A Shareholder/Partner?
A Shareholder is anyone who owns the S-corporation stock. They can be a person, or a couple (married). Trusts that are owned by individuals and estates can also be shareholders. S-corp owners must be US citizens or resident aliens.
For partnerships, just about anyone or anything can be an owner. Individuals, other businesses, non-resident aliens, C-corps, etc.
Shareholders and partners are required to have a social security number or employer identification number (EIN).
Individual shareholders that are also officers of the s-corporation are required to be paid a salary. That salary must be entered into Halon. If a shareholder is not an officer, they may not have salary. But remember, someone must be an officer so if no one else works there, then the shareholders must be the officers and have salary.
Follow the Officers Compensation Matrix found here for amounts that must be run to agree with Halon Tax standards and Halon Defender insurance.
Partnerships are not required to run any kind of salary.
Ownership in an S-corp or partnership is based on the stock owned or membership certificates. Halon asks for this information as a percentage. If there is no agreement in place on the amount each shareholder/partner owns, the law will assume it is split evenly.
So if there are 1000 shares of stock and one person owns 200 and the other owns 200, and the remaining 600 are still owned by the business, the owners are 50-50 equal partners meaning each owns 50%.
This shows that stock that has not been issued does not factor in the % ownership of the entity.
If you have questions about how to calculate ownership you can also reach out to support for help.