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WiseOwl58, Attorney
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I set my son up into a corporation which was formed in Virginia,

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I set my son up into a corporation which was formed in Virginia, which is an S corporation, and he is the sole owner. He wants to get out of the business, so how do we go about transferring the corporation into my name, and can I then file for the S corporation status? The corporation has a 5 year government contact it needs to fulfill, which creating very little profit, but we cannot disolve it and start fresh because of this.
You can simply purchase all of the stock from your son, for an agreed upon price. If you own 100% of the shares, all of the income or loss for.the company will be passes through to your personal tax return, where it gets reported.

The existing S corporation status remains in place and is transferred to you along with the shares.

Food luck to you. I wish you all the best.
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Customer: replied 4 years ago.

In regard to the shares with the S Corporation there are 2,000 listed with the Virginia Sate Corporation Commission. Once we put on paper that I purchase all the shares from my son, and I am now the President and sole owner of all outstanding shares, I see that we can edit online with our next Annual Report filing with the state, the Directors and Principal Officers, and take his name off and place mine on. Is there any other form or place we need to notify the Virginia State Corporation of the sale of the shares to me?


 


In addition, where, when and how do we notify the IRS, or do we just file as normal and have the end of year Schedule E come to me, to report the income?

That is correct as far as the Virginia notification goes.

For.the IRS, the company would.file.a.K1 that shows.who.are.the shareholders and.who gets.what percentage of.the company's income. It is all reported.to the IRS on the K1 and then each shareholder reports that amount on hid or her personal income tax return.

Good luck.to.you. I.wish you all the best.
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