Partners may agree that Partner A will receive 10 percent of the profits and Partner B 90 percent of the profits or vice versa. The partners must agree, but without an agreement, they will share the benefits equally. In an S company, the income and losses of the companies are paid and are taxed on the shareholders in relation to their participation. Shareholders also include their profits or losses resulting from the sale of shares or the liquidation of shares as income. As a general rule, dividends paid by company S are not taken into account in income, as long as the shareholder has a basis in his shares. The partners may undertake to pay part of the annual profits in interest on their capital contributions. This would ensure that partners who have contributed higher capital will receive higher shares in profits.