Legal Question in Business Law in Indiana
Father wants to retire an sell company to son
My father owns a service-based company which is set-up as an S-Corporation. The company only consists of him, my mom and me and I am not a share holder (both dad and mom own all shares). He is retiring but I want to continue the business on my own. Is it possible for me to buy the company from my parents so that I can keep the company name and make the transition ''seamless'' to the clients? The original plan was for him to dissolve the s-corp and I would start my own s-corp. But, I'm not sure how to do that and keep the existing company name. We have been in business for a long time and have built a reputable name. Are there any other options?
2 Answers from Attorneys
Re: Father wants to retire an sell company to son
There are several choices. Bulk sales or have stock issued to you. This is not something to do on your own, get a lawyer.
Re: Father wants to retire an sell company to son
A corporation's status as an S corporation has nothing to do with whether you can buy or sell shares of stock. Based on the information provided,there is no reason why you cannot
purchase the shares of stock from your parents. However, you may want to consult a professional concerning tax ramnifications.
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