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I have a C Corp that has 1000 shares. I'm setting up a

Hello,I have a C Corp...
Hello,I have a C Corp that has 1000 shares. I'm setting up a separate website company that will be owned by this C Corp. I want this website to have it's own shares of stock (maybe 100,000 shares) so I can issue shares for additional funding for this separate website project.What is the best way to set this up?Thanks.
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Answered in 1 hour by:
10/19/2017
Roy Hadavi
Category: Business Law
Satisfied Customers: 916
Experience: Attorney at Law Offices of Rosenstein & Associates
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Hi. My name is ***** ***** I am a licensed attorney with extensive business law experience. I would be happy to provide assistance. Please keep in mind that our conversation does not include an attorney-client relationship and this is for general information purposes only.

Answer: What you are trying to accomplish is quite simple. Set up the new corporation and issue a certain number of the 100,000 shares to your current corporation. I usually set up corporations to have 1,000,000 shares. Gives the business more shares to work with. You can then issue your current corporation 500,000 of the shares and have the remaining 500,000 to sell to investors.

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Customer reply replied 1 month ago
Hello,
The website that I am setting up is going to be a subsidiary to the main C corp. So do I need to set up another c corp or can I set up a company as the subsidiary to the main c corp and issue 1,000,000 shares to the subsidiary? DO I have to contact the State for the shares? How do I go about setting up the subsidiary and then get shares to issue?Thanks.

A subsidiary is just a term for a legal entity (such as a corporation, LLC, partnership) that is owned by another legal entity. If you want to have a parent company relationship between the two entities, you would need to set form a second corporation and have the parent corporation own shares in the subsidiary corporation. This would require forming a new corporation with the secretary of state.

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Customer reply replied 1 month ago
OK... so I can't set the Website up as a company and have it protected under the parent C Corp and issue shares, I will have to set up 2 c corps, one as the parent and one as the subsidiary?Thanks

That is correct.

Roy Hadavi
Category: Business Law
Satisfied Customers: 916
Experience: Attorney at Law Offices of Rosenstein & Associates
Verified
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