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My husband and I are forming an S-Corp. We are the only shareholders. Do we divide the shares 50/50? How many shares to start?

Denver, CO |
Filed under: Business

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Attorney Answers 3


  1. You can divide the equity any way that you would like to and likewise can issue as many or as few shares as you see fit. It all depends on your long term plans for the company really.

    Entity formation is very affordable and hiring an attorney for this process will ensure your corporate governance is well put together to meet the needs of how you want your company to operate.

    Legal disclaimer: I am licensed to practice law in the state of Washington and the answer provided above is for general information purposes only and should not be relied on as specific legal advice. This answer does not form an attorney-client relationship. You should consult with an attorney of your choice to fully advise you about your legal rights and obligations.


  2. Mr. Camm is correct. You can set up the S-Corp any way that you like and split it 50/50 or some other proportion and issue as many shares as you want. It is always advisable to sit down with one of us who handles small business formation to review your documents and make sure that everything is accurate. Best of luck with your business.

    The information provided in this answer does not create an attorney-client relationship. If you are interested in his legal services, feel free to call Chris at (303) 409-7635 at his law office in the Denver Tech Center. All initial consultations are free of charge.


  3. As both colleagues accurately noted, you can divide in any way you two see fit. You could just issue one share each, if you like. Unless you plan to get an outside investor or other equity holder, it is fairly simple 50-50 if that reflects what you two are doing.

    Now, if you decide to get employees, contractors, investors, you really must speak with a business attorney to advise the company and draft the agreements. Depending on your business, speaking with a business attorney now on the entity formalities (important for a corporation) and the respective contracts will save you money and headache in the long run. Good luck with your venture.

    This answer is for informational purposes only and is not legal advice regarding your question and does not establish an attorney-client relationship.

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