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David L
David L, Attorney
Category: Business Law
Satisfied Customers: 3255
Experience:  Corporate and Business lawyer since 1997
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What document or agreement is needed owner of an S-corp

Customer Question

What document or agreement is needed for an owner of an S-corp (whom is the sole owner of all 1000 shares) to give 500 shares to someone else? Where can I find a template of such a document?
Submitted: 1 year ago.
Category: Business Law
Expert:  David L replied 1 year ago.

Hi and thanks for asking your question. My name is ***** ***** I will be assisting you. I am a Florida licensed attorney. There are a few ways to accomplish this transaction. The easiest way is to simply sign over a stock certificate representing 500 shares. Blank stock shares come within corporate kits that one would generally purchase when forming the corporation. If you don't have a corporate kit, you can order one for less than $100 online. The kit will come with custom pre-printed blank stock shares with the name of your company. Each share can be endorsed to another party. There is also a stock ledger within the corporate book to keep track of ownership interests.

If you give or sell half the company to another party, you now have a shareholder with an equal interest in your corporation. You might consider two more documents. One would be a stock purchase agreement, which details the the terms of the transaction. The other would be a shareholder agreement, which defines the terms of your relationship with your new "partner." You can find sample stock purchase agreements and shareholder agreements by doing an Internet search.