Legal Question in Business Law in New York

S Corp Exit Strategy

I owe 40% of an S Corp. As a result of the economic downturn, the business has not been profitable for a long time. I no longer think that it makes financial sense to continue with the business and am in favor of discontinuing the operations; However, my partner (owes 60%) refuses to close. Since the contract does not have any exit strategy, he is telling me that If I walk away, I will loose everything.

Are there any legal actions that I could take to make him buy my portion of the corporation or allow me to keep ownership of some of the assets? What are my options if I walk away?

The corporation does not have any outstanding liabilities.


Asked on 5/04/09, 4:15 pm

1 Answer from Attorneys
Christopher Hoyt The Law Offices of Christopher W. Hoyt

Re: S Corp Exit Strategy

You should consult with an attorney and not rely on what your partner says. An attorney would need to review any contracts that you have with your partner as well as the corporate documents for the S-Corp in order to give you advice on the best course of action. Please feel free to contact my office if we may be of any assistance in this matter.

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Answered on 5/04/09, 4:28 pm


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