QUESTION
How do I sell my shares in an S corp to my business partner?
Asked on Aug 22nd, 2013 on Business Litigation - California
More details to this question:
Right now I am a 50% share holder in a company. My business partner is the other 50%. I want out of the business and we are discussing her buying my 50%. I have asked for $25,000 and I'm out. She has come back with an offer of $15,000. There are two ways I would like to approach her, one is: I am prepared to ask her for $20,000 and I wash my hands clean of the business with her also signing a letter of indemnity saying I no longer have any financial responsibility in the business? Will that be enough to protect me if she defaults on any of the bills that may have my name on it? Can I somehow put a clause in the letter of indemnity that if she does default more than a certain time or amount that I then gain full control of my business back or even just my percentage without refunding her any money she has paid me?? Ran out of room for #2
1 ANSWER
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You can sell your share fairly easily. However, for me to explain this in a one page letter would not serve your interests very well. Generally, through the use of certain legal documents you can effectuate a valid sale of your shares.
To protect your self from future liability you must give notice to all interested parties as well as the secretary of state. Further, yes you can situate a deal whereby default of payment will give you right to repossess the business with out further liability to the purchaser. However, this will require very well written legal documents in which must be signed by the purchaser.
I'm a very good business lawyer. I would love to help you with this matter. I promise to give you the best price because I find this very interesting and enjoy doing this type of work.
If you like, I invite you to call me today so I can help you.
Best Regards,
Codi M. Dada, Attorney at Law 415-827-1425
Answered on Aug 26th, 2013 at 2:07 PM