Forums: Discussions for entrepreneurs and small business.

I am joining my friends S-Corporation as a partner.

Is a signed agreement between me and my friend enough to protect my interest in the Corporation or do I need to make sure my name is reflected on the lease and thes added to the corporation?

Aleki,
When you say join? What exactly did you do?
1. Did you join your friends S-Corporation as a board of directors?
2. Did you become a share holder of the corporation?
What I mean is, did he give you lets say 25% of the company? or do you simply get to sit on the board?

Please explain further...


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Edgar Monroy
Web Developer / Owner / Consultant
When starting your own business the need to "know-how" is greater than money!
http://www.nuevolution.net

Nuevolution,

I invested $40k for a 25% share. All we did is draft an agreement between ourselves which we both signed (it say how much I invested and what share of the business it translates to).

I am curious if this is enough. Do I need to do anything further as far as ensuring maximum legal protection. You know to make sure I really own 25%?

Thanks alot for any feedback.

Aleki.

Aleki,

You need to be included as a shareholder in the corporation`s shareholder agreement identifying your percentage interest.  For example, how would you know if the existing shareholders have interests collectively greater than 75% (making your interest less than 25%)?


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Pepper Law Group, LLC
21 E. High Street, Suite D
Somerville, NJ 08876
informationlaw.com
Now available on DVD!
The Legal Considerations of Starting an Online Business

Pepperlegal is totally correct.
I would sit down with your buddies and start asking questions.


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Edgar Monroy
Web Developer / Owner / Consultant
When starting your own business the need to "know-how" is greater than money!
http://www.nuevolution.net

Thank you very much Pepperlegal and Nuevolution. I really appreciate your responses.