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50% owner of s-corp. My partner agrees to walk away and give my his 50%. What do we need to do to make this a legal transaction?

Jacksonville, FL |
Filed under: S-corporation Business

He has taken on another job. I do 100% of the work and should be entited to 100% of the profit. He has agreed, but we do not know what to do next to make this a legal transfer of shares from him to me.

Attorney Answers 1

Posted

You need to have him execute a stock assignment of his shares to you. You would want this stock assignment to include some representations and warranties from him to you, such as -- he owns the shares, hasn't sold them to someone else, etc. But it can be a short document. You may also want that document to include a release of claims, in which he releases you from any claims on the business--such as claims for unpaid salaries or similar amounts. It won't take long for a lawyer to assist you with this, but you should find a lawyer who can help you.

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