repman5573
Junior Member
Texas, I have a s-Corp that was originally capitalized with $1000 with me being the sole owner. I did not issue a stock certificate at that time. The s-Corp did business under a d.b.a. for several years and then sold its assets. The Corp was idle for several years. Now I am starting another business concern and have established a new d.b.a. for the Corp. I want to bring in a near equal partner and increase the corporation’s capital. Specifically, I would like to increase the capitol to $10.000 and retain majority ownership.
I was thinking the best way to accomplish this would be the Corp could issue 1000 shares to me for the $1000 I had originally paid in, and sell another 4,001 shares of stock at $1 par value to me, and 4999 shares to my partner? In the end I would own 5001 shares and he would own 4999.
1) Is there anything wrong with this approach?
2) Do I need a lawyer to make the issuing of stock legal?
3) Or, is there a better way to accomplish this?
I was thinking the best way to accomplish this would be the Corp could issue 1000 shares to me for the $1000 I had originally paid in, and sell another 4,001 shares of stock at $1 par value to me, and 4999 shares to my partner? In the end I would own 5001 shares and he would own 4999.
1) Is there anything wrong with this approach?
2) Do I need a lawyer to make the issuing of stock legal?
3) Or, is there a better way to accomplish this?
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