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How to Issue Employee Stock Options for an S

As a small company with three owners, there is a natural tendency to refer to fellow owners
cheap oakleys as partners

But an S corporation is not a partnership. As with any other corporation, the owners of an S corp are shareholders who own company stock and have all the voting rights associated with the stock that they own.

The
wholesale cheap oakley sunglasses procedure for issuing shares of stock is relatively simple, as discussed below. However, the real question is whether or not you really want to transfer your own personal shares of stock to this individual. This is not the way bringing on a
oakley sunglasses replica new shareholder is traditionally done, and doing so may have potential tax consequences (see a CPA for clarification). Since the employee will presumably receive stock in exchange for services rendered to the corporation, it would make the most sense to have the
oakleys sunglasses corporation issue shares to him. As you decide on the amount of increase, consider
cheap oakleys that you
fake oakley sunglasses may want to bring on additional shareholders later and/or set up an employee stock option plan to entice new employees in the future; that way, your pool of shares will be large enough to accommodate these situations. A corporation can have both and shares. What matters is who owns the issued shares, whether or not they are majority shareholders, and what their voting rights are (in the case of an
cheap oakley sunglasses S corp, there can only be one class of stock, so the voting rights would be the same for all shareholders).

The directors of a corporation are normally responsible for issuing shares of corporate stock, so it is through a board resolution that you would document the issuance of stock to your new employee in accordance with your corporate bylaws. You might also issue a stock certificate as evidence of his ownership of the shares.Articles Connexes£º

Articles Connexes£º

Posted by at June 22, 2015
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