Yes, banks will require personal financisl statement from all shareholders, most likely personal guarantee also as Brian mentioned.

Shareholders of the world unite'Millions more are underwater -- owing more than their home is worth -- and may give up if things don't improve soon.

Jeff -An s-corp passes through income to the shareholders.

But then you may be looking at regulatory issues there if you offer more than one type of shareholder class.

so said Warren Buffett at the annual Berkshire Hathaway Shareholder's meeting last Saturday.And while he was talking about the Stock Market, I think that it applies equally well to Real Estate.

Also, if you want to take money out of the business throughout the year, but only technically want to pay salary once at the end of the year, you can treat the money being pulled out as a "Loan to Shareholders" and then let you accountant reconcile it at the time the taxes are paid.

@Raylene Luckett Froman now that AirBNB is public, they will be responsible to their share holders.

my understanding is each shareholder of a S Corp must be paid a “reasonable salary” per irs rules.  

@Joshua NowellMake sure you understand all the rules and be aware if the price is too low the Coop board might reject the sale it is their right to protect the price per share for each shareholder..

This is known as a built in gain tax and is paid in addition to the tax paid by the S Corp shareholders on the total gain for the sale.