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how do I sell my business/s-corp

I own a business that is structured as a corporation with s-corp status with the IRS. A private party wants to buy the business. Now of course he can just buy the assets of my corp and form his own corp but doesn't want to because off all the licenses and bank accts we have. It would be a paperwork nightmare. So basically I want to sell him my shares in the corporation. That way he can just walk in and take over. My questions are:

  1. How exactly do you sell the shares you own (I own 100%)? What document proves they are xfered to the buyer?
  2. The corp has s-corp status with the IRS. Profits from the corp are automatically tagged to my personal income. How is this changed so the IRS sees the new owner of the corp?
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Reply to
johnmolinda
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In part it depends on the laws of the state the business is located or incorporated in. Assuming it's not a publically traded company, you probably have to satisfy securities laws or qualify for an exemption from them to transfer title to the shares. In terms of licenses, some of them are likely based on the officers of the company. So any change in ownership of the company could require applying for and receiving authorization for amendments in the license application. You really need to check with a local business lawyer to determine exactly what you need to do under your particular circumstances. Stu

Reply to
Stuart A. Bronstein

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