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J. Warren
J. Warren, Attorney
Category: Business Law
Satisfied Customers: 2240
Experience:  Experience in general business transaction and formation matters.
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In a small C-Corp with just 2 shareholders, can the

Customer Question

In a small C-Corp with just 2 shareholders, can the corporation buy out one shareholder (buying back shares like the big companies) or would I have to buy out the other shareholder with my own funds?
Submitted: 1 year ago.
Category: Business Law
Expert:  J. Warren replied 1 year ago.

Hello my name is ***** ***** I look forward to providing you information. Please note:

(1) this is general information and is not legal advice. I never propose a specific course of action. There is no attorney-client relationship or privilege that is formed when communicating to an expert on this site. The site repeats this disclaimer numerous times. By continuing, you confirm that you understand and agree to these terms; and

(2) there may be a slight delay between your follow ups and my reply while I am typing out my answer.

Yes the corporation may purchase the shares of shareholder. This is called a redemption of stock. Here is a link to a sample redemption agreement https://www.leaplaw.com/pubSearch/preview/redemption_agmt.pdf

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All states have intricacies in their laws and any information given is simply information only and specifically is not intended to be, nor does it constitute, legal advice. This communication does not establish an attorney-client relationship with you.

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