I created an S-corporation for handling managerial transactions. I have some pretty good investments going and mentioned them to some friends of mine. They were interested in participating, but, the initial investment requirements are $25,000+. (not my rules, my investors’ rules). Once invested, though, I can increase by as little as $1000 increments. I was thinking, that I could sell some of the shares from my S-corporation to my friends and pay them out quarterly dividends that would make it worth it for both me and them. So, how does one go about selling shares from an S-corporation that I own? Thanks.
Dean
Another idea I became aware of the other day. In my college accounting class we discussed raising capital for businesses. They mentioned the issuing of share, then they talked about issuing bonds. That was something that I wasn’t aware of prior, but could possibly work just as well as shares of stock. Does anybody have any thoughts/recommendations on one or the other? Thanks.
Dean
the corporation would have to issue bonds under the direction of the officers or directors. this may or may not be easier than selling a portion of your stock ownership. If the other owners don’t want you to sell part of your ownership%, it seems unlikely that they would want to issue bonds.
a bond is nothing more than a loan. the corporation can borrow money at will without having to “issue bonds.”