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    4 Replies Latest reply on May 20, 2008 5:45 PM by LUCKIEST

    How to add a partner in S-corp?

    ahash2008 Newbie
      hello all
      I will appreciate if some one can guide me as to how to add a partner in already established S-corp? Currently, its under my name and I want to add a partner who will have 50% share of the company. thanks,

      ali
        • Re: How to add a partner in S-corp?
          LUCKIEST Guide
          How to add a partner in S-corp.

          Do you have a Lawyer?? What will your partner be contributing?? MONEY??
          Is the partner BUYING 50 % of the business.
          See the following.

          A corporation consists
          of one or more shareholders, a board of directors and officers--and each one
          plays a specific role.
          Even though yours might be a one-man corporation
          right now, you'll have to act in your separate capacities as shareholder
          and
          director for what you are trying to do.

          The directors of a corporation are empowered to, among other things,
          authorize the issuance of stock and elect corporate officers.
          Acting as the
          sole director of the corporation, you would sign a board resolution in your
          capacity as director documenting the
          issuance of stock to the individual you
          wish to add as a shareholder.
          His percentage of ownership in the corporation
          will be in proportion to the amount of shares purchased.
          The shareholders of an S
          corporation must be either U.S. citizens or residents

          Good luck, LUCKIEST
          • Re: How to add a partner in S-corp?
            LUCKIEST Guide
            How to add a partner in S-corp, Welcome to this web site.

            Do you have a lawyer?? What is your partner putting into the Corp?? MONEY??

            Your partner will own 50 % of the company. RIGHT??
              • Re: How to add a partner in S-corp?
                ahash2008 Newbie
                Yes, he will be having 50% of the stake in the company. He has been working with me and know we decided to make him a partner. Currently, I don't have a lawyer. At this point I just want to understand that what all paper work is required to add him as my partner. thanks,

                ali
                  • Re: How to add a partner in S-corp?
                    LUCKIEST Guide
                    to add a partner in S-corp

                    Acting as the sole director of the corporation, you would sign a board resolution
                    in your capacity as director documenting the issuance of stock to the individual you
                    wish to add as a shareholder.
                    His percentage of ownership in the corporation will be in proportion to the amount of
                    shares purchased.

                    Again LUCKIEST