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

How to add a partner in S-corp?

ahash2008 Newbie
Currently Being Moderated
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 Master
    Currently Being Moderated
    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 Master
    Currently Being Moderated
    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
      Currently Being Moderated
      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 Master
        Currently Being Moderated
        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

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