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Help with California S Corp / Shareholders

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justagizmo

Junior Member
California

My boyfriend & I have been in a CA S Corp back to 2006 I believe. The corp has been inactive, meaning no monies have been received, since the start.

Since I do not have much knowledge regarding the tax responsibilities, I thought that filing our annual returns "INACTIVE FOR THE YEAR ____" was sufficient. Come to find out this was true for only the 1st year of filing. I am now fulfilling an arrangement with the IRS for NOT filing the $800 Inactive fee for the past year.

AN ASIDE TO MY QUESTION: my boyfriend wants to have no financial ties to the corporation due to what he tells me is a "problem financial past".

Anyway, the business is now looking to have considerable income. My boyfriend wants to be an officer & have me be the sole shareholder. He does not want his checkered past affect the business.

How do I transfer his shares to me & keep the business on the up & up? Going forward, we will have a qualified CPA handle the finances.

MarilynnWhat is the name of your state (only U.S. law)?
 


davew128

Senior Member
The IRS doesn't assess $800 on s-corps. The California FTB does. Why do you have a corporation in the first place, particularly since it does nothing but cost you money and quite honestly, you didn't even know that much.
 

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