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Hello. My name is***** am an attorney. I will review your question. I may need to clarify facts first. I will answer & we can discuss issues.
Is there a reason why you want to switch to a c-corp?
Hi Patrick: It would just be as easy with an S-corp to give them a membership interest. Plus the taxation is better: there is no double taxation like with a C-corporation. But I suppose your investor wants preferred shares. The form you provide seems is more of a template, which is fine but would have to be revised significantly. If you are looking for a drafting attorney to help you, it is best to hire one. If you already have an investor and are drafting documents, it is better to have the documents tailored made for you situation with an attorney. We cannot do that from Just Answer.
Hi Patrick: First, I want to state my last response should have said LLC and not S-corp regarding membership interest. With regard to your follow up request, Just Answer is not a law firm. We cannot draft documents for you. You need to hire an attorney to draft documents. Further, there would most likely would have to be some input from a CPA regarding any tax issues. My recommendation is that you use the service of an attorney who can spend time on making sure your documents are properly drafted, especially when someone is investing $200,000.00. It is worth the money to be safe rather than be sorry.