Discussion:New shareholder for C Corp
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Discussion Forum Index --> Accounting Questions --> New shareholder for C Corp
| 16 July 2008 | |
| My neighbor owns a c corp and is a sole 100% shareholder in it. I expressed my interest to have a 50% stake in the C corp
and he decided to sell his shares to me. Do I give a personal check to him for the amount or to the C corp. Pl advise. | |
| 17 July 2008 | |
| This is a question that should be answered by an attorney. Your agreement should be in the form of a written contract to avoid future problems as to exactly what it is you're purchasing.
Please keep in mind - this site is for practitioners to discuss daily issues among themselves. It's not meant to provide off the cuff accounting/tax/legal advice to the general public. | |
PHIL MOODY (talk|edits) said: | 17 July 2008 |
| Uncle has good advise. See an attorney.
Some things you should consider: Have you done your due diligence, and really know whats going on inside the corporation? who controls the board of directors? Who are the corporate officers? What are the current salaries to insiders, and are they going to change? Are there non-compete contracts in place with the major players? Pending IRS problems or lawsuits? | |
