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What is best way to buy out a partner in a C corp business.

Customer Question
What is best way...

What is best way to buy out a partner in a C corp business

Accountant's Assistant: What state are you in? It matters because laws vary by location.

Illinois

Accountant's Assistant: Has anything been filed or reported?

No

Accountant's Assistant: Anything else you want the lawyer to know before I connect you?

I own 51% and he owns 49%

Submitted: 3 months ago.Category: Tax
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Answered in 17 minutes by:
1/6/2018
Tax Professional: Dr. Fiona Chen, Certified Public Accountant (CPA) replied 3 months ago
Dr. Fiona Chen
Dr. Fiona Chen, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 927
Experience: Former IRS Revenue Agent
Verified

Dear Customer,

In general, to buy out a partner is with the at least money as the other party is willing to sell and to make sure the transaction is well documented and signed on paper for the partner to waive any future possible disputes or litigation rights.

For your particular question, would you please give a little more information because the issue is more than the form of the organization. Have you consulted with any CPA or attorney and what their opinion and advice are. What type of business are you in and what is the size of the corporation's gross receipts in the past three years and what is the size of the corporation assets and how long have the corporation in existence and is there any lawsuit of dispute filed and are there new shareholders waiting to come in and etc.

The cleanest way is for you to put up new, fresh money to buy the other shareholder (not partner). However, there are people who prefer to purchase back the shares back by the corporation.

Regards,

Fiona Chen, MPA,

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Dr. Fiona Chen
Dr. Fiona Chen
Dr. Fiona Chen, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 927
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Experience: Former IRS Revenue Agent

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