My friend and I are starting a business, however he currently own 100 of the shares. We have agreed to split the business 67 / 33 - how d...

Question

My friend and I are starting a business, however he currently own 100% of the shares. We have agreed to split the business 67% / 33% - how do we go about making this official?

Answer

A partnership agreement or other document of that nature.

Answer

You and your friend will need to enter into a stock purchase agreement and a partnership agreement. In addition, the bylaws of the company (or the membership agreement if it's a LLC) has to be amended. In some situation you may also want to amend the certificate of incorporation (or certificate of organization if it's a LLC) and re-file it with the state.

You should be aware that there may be some tax consequences if not done properly.

Feel free to contact my office at your earliest convenience to handle this transaction.

Roman R. Fichman, Esq.

www.TheLegalist.com │ @TheLegalist

email: Info (at) TheLegalist (dot) com

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Answer

Mr. Fichman is correct, you would need an agreement and the type of agreement would vary depending on the formation of the company. We have substantial experience handling these types of cases and can also assist you with any trademarking needs you may have. However, we would need some more information before making a complete and proper determination. You are welcome to contact us for a free consultation.

Steven Czik

CZIK LAW PLLC

101 Avenue of the Americas, 15th Floor

New York, New York 10013

212.413.4462

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