Adding shareholder

[TAX]

Client, has one shareholder currently. He will add one more in 2009. New share holder will have equal stocks. (Both share holder will be 50% each)

When is the best time to issue him shares now or in 2010? what are the tax consequences of either of the situation?

Thanks!

[BOB W]

Client, has one shareholder currently. He will add one more in 2009. New share holder will have equal stocks. (Both share holder will be 50% each)

When is the best time to issue him shares now or in 2010? what are the tax consequences of either of the situation?

Thanks!

How is the new shareholder acquiring the stock?

Remember the new shareholder automatically owns 50% of the AAA account, for starters.

[TAX]

How is the new shareholder acquiring the stock?

Remember the new shareholder automatically owns 50% of the AAA account, for starters.

Goal for new SH is to get half of total stocks. New and old SH have no issues. Any legal and tax effective arrangement will work. When all said and done both will own 50% of total stocks.

They can wait till 2010 if necessary.

[ChEAr$]

Easiest way is for current stockholder to sell half of his stock which is already issued.
He can name his own price, and there will be no bookkeeping entries on corporate books;
only in shareholder accounts as a transfer.