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First and foremost, when you go to do the transfer, you will need to consult a CPA who will ensure that a fair value approach to ensure the sale of the shares (if you are selling the shares) is adequately documented and proper in the event of an IRS audit
Then, you will need to draft a purchase agreement...even if you are only giving nominal consideration such as $1
You can find a purchase agreement template online
However, I think you would be well advised to seek the advice of an attorney in your state, to ensure that your agreement is executed properly
If you are simply giving the shares to the other officer, you would get a transfer agreement
But, you also need to look at your original paperwork to see if there are restrictions on when you can transfer stock
Once you draft the transfer agreement, then you physically give the shares to the other officer, and record the transfer in the ledger to your business.
A transfer agreement is here: http://www.leaplaw.com/pubsearch/preview/1366_StockTransferAgmt.pdf
So in short you will either draft a purchase or transfer agreement. If selling the shares, use the services of a CPA to ensure that the value of the stock is set and documented appropriately. Review your original S Corp documents to ensure that you can make the transfer - there can be restrictions on when you can transfer shares. You wouldn't know this unless you read your incorporation documents.
Then, once you have your purchase or transfer agreement, physically give the shares to the new owner and record the transfer in the ledger of your business
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When I opened the corp it was for 200 shares with no par value. I looked at the purchase agreement and it is like twenty something pages. I think that is very detailed for what I am trying to do. Basically I am going partners with a friend and I want him to be a partner in the corp which is brand new and has no assets. Cant I just transfer the stock to him for $1 without a purchase agreement and just a transfer agreement? Also, is it necessary to have a value for the shares being there was no value when the corp was opened?
So I am allowed to just transfer stock to another person without any financial consideration. I ask that because looking around a lot of people bring up this transfer for $1.00
So would I make the shares worth $.01 each?