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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10602
Experience:  30 years of corporate, litigation and international law
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I want to transfer 24.5% stock to my daughters. I own a

Customer Question

I want to transfer 24.5% stock to my daughters. I own a micro business, basically myself, two daughters a one other employee. I remember when my parents transferred the stock to me there was an attorney involved, but I read one of your earlier answers and it stated I should simply notify the corporation of the transfer and instruct it to issue new certificates as well as cancelling my own. I don't remember ever receiving a certificate. Is it something filed with city court? How does the corporation go about issuing the stock certificate? Is it just a written statement that I should have notarized?
JA: Since laws vary from place to place, what state is this in?
Customer: Louisiana
JA: Has anything been officially filed? If so, what?
Customer: I don't really know. Is it usual procedure to file with the courthouse?
JA: Anything else you want the lawyer to know before I connect you?
Customer: I guess not.
Submitted: 9 months ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 9 months ago.

Hello, my name is ***** ***** I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for.

I suggest you start by cleaning up your corporate records. First check your original corporate minutes. There should be a board resolution authorizing the sale of stock to you as the founder of the business. It is usually in the corporate minute book you got when your formed your corporation. If that was not done then create a set of minutes with you as the director authorizing the corporation to issue you stock for the amount you initially invested. The issuance of the stock gets recorded in the corporate minute book which is part of the corporate minute book that has the stock certificates. You then take the stock certificate that was issued to you and sign it on the back. On the front of the stock certicate you just signed mark in block letters CANCELLED. Go back to the corporate minute book and get the number of stock certificates you will need to give your daughter(s) the 24.5% you plan to give them plus one certificate for yourself. If for example you originally had two hundred shares and you are giving 24.5% to one daughter. On certificate would be 49 shares and the remaining 151 shares would be made to you. In your corporate records you would reflect that you transferred 49 shares to your daughter and reissued 151 shares to yourself. That is it. There is no filing that needs to be made anywhere.

If I have answered all your questions, please highly rate my answer as that is how I receive credit. If you have more questions, please let me know. If the answer was especially helpful you can provide a bonus.

Expert:  Richard - Bizlaw replied 9 months ago.

I sent you the answer to your question a few days ago. If you do not have any additional questions, please highly rate my answer as that is how I get credit for working on your question.

Expert:  Richard - Bizlaw replied 9 months ago.

Since you appear to have no more questions, you still need to rate my answer to your question as that is how I get credit for working on your question.