Legal Question in Business Law in Utah

Business Ownership

I am a co-owner of a small business that was formed about seven years ago. My business partner and I have always treated the corporation as an equal partnership when it comes to salaries and year end dividend dispersal.

I have not given it much thought until recently but I am not sure if my partner and I ever put anything on paper that would specify the percentage of ownership each of us have in the corporation.

My question then is; how does the law recognize ownership in a company? At the time of incorporation should we have been required to file documentation showing ownership? I do not remember doing so but I am not positive that we did not.

These are not questions that I have discussed with my business partner for reasons that I will not go into now. So what documentation would I look for to find out how the legally recognized description of our company ownership would be divided up?


Asked on 11/15/04, 2:57 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Business Ownership

If you are a corporation you should have articles of incorporation on file with the Sec of State. You should also have bylaws as the rules of how the corporation is run. Ownership is indicated by stock certificates. In the absence of certificates, the manner in which the business has been operated will prevail and become the evidence of ownership. So check with the Utah Department of Business, operated by the Secretary of State. You can check online for some of the info.

If you are not a corporation, you may be a partnership by default - similar result.

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Answered on 11/17/04, 4:08 pm


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