Can I start a new business to reset the cap table of my existing startup?
4 attorney answers
A; No, not the way you have the question posed. The issue will be the actions that the other shareholders may take to stop you. You should consult with a business attorney who can evaluate and analyze the particulars of your case and advise you accordingly.
The business and assets of the existing Corporation belong to that corporation and you cannot simply form a new corporation and transfer the existing Corporation's assets to the new company without incurring significant liability. You should consult with an experienced Corporate Attorney to assess your current corporate structure and problems to seek a lawful approach to the issues that concern you.
The foregoing discussion does not establish an attorney-client relationship, is qualified by the limited facts presented above, and should not be relied upon as legal advice. My intention in answering questions is to provide guidance that will familiarize the public with the subject matter and facilitate selecting and interacting with attorneys. To obtain definitive legal advice upon which one can rely necessitates retaining an attorney who is qualified in this particular area of the law.
Top Contributor 2021
Top Contributor 2020
Top Contributor 2019
Top Contributor 2018
Top Contributor 2017
Top Contributor 2016
Top Contributor 2015
Top Contributor 2014
Top Contributor 2013
First of all a Sub-Chapter s Corp is the worst form of corporate structure there is. You cannot do what you have stated or you will buy yourself a lawsuit, among other problems. You really need to retain an experienced IN corporate litigation attorney to represent you in this matter. THIS IS NOT LEGAL ADVICE! YOU NEED TO SPEAK TO AN ATTORNEY WHO IS LICENSED IN YOUR STATE FOR LEGAL ADVICE. This is merely suggestions for you to think about in discussing your situation with the local attorney.
If you found this Answer helpful, please mark it as "Best Answer" Please be advised that the answer above is only general in nature cannot be construed as legal advice, given that not enough facts are known. It is your responsibility to retain a lawyer to analyze the facts specific to your particular situation in order to give you specific advice. Specific answers will require cognizance of all pertinent facts about your case. Any answers offered on Avvo are of a general nature only, and are not meant to create an attorney-client relationship.