Legal Question in Business Law in Maryland

Selling back ownership interests will be affected by several things, including your basis in the entity, the value of the entity (regardless of whether the business is currently generating profits) and the bylaws (assuming they exist). (If these were not exempt from securities registration a host of other requirements would come into play).

By way of general information, shares are transferred by simply endorsing the shares (the same way one would sign over any other title document). The parties may need to file a gift tax return depending on the company value. That does not fully detail the tax and other ramifications which require specific advice from your attorney / accountant / tax advisor.

There are a number of business and tax variables and fact-specific issues that need to be carefully worked through to properly sell your ownership interest in the business under Federal and MD law, protect the business assets, provide limited liability protection for the business owners/participants, etc. An experienced business law/tax attorney should be able to handle this under Federal and MD law. Please note that my legal services are available only with a signed engagement agreement in accordance with the Maryland Rules of Professional Conduct applicable to attorneys licensed in the state of MD. If I can be of any help to you, contact my offices as I would be pleased to provide legal/tax support. Sincerely, Robert Beatson II; 4-22-2014, 2:00 p.m. EST Law Offices of Robert Beatson, II 9818 Glynshire Way Potomac, MD 20854 Email: [email protected] Website: www.beatsonlaw.com Licensed to practice law in DC, MD, VA, and NY.