Sorry for all the corporate questions, still learning about corps. Can an original issue of stock be for an amount of money less than par value, if state matters its NC. Thanks for the help everyone, I need to know on this ASAP!
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Local state law applies however in general par value is simply a value assigned to the security by the issuer and bears no relationship to issue price or market value. Again each relevant state code applies.Originally posted by Super Mom View Post -
That's what I thought, I had no luck in finding out about NC state short of ordering the laws from the SOS, no time for that. Anyone know if there's a problem in NC? This is a family corp with no public sales.Comment
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The Company is small, and it's family only, I'm thinking State law doesn't apply in that situation maybe I read somewhere???Comment
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351?
Are you talking about the founders transferring cash &/or property to their newly-formed corporation in exchange for stock in a tax-free transfer? If so, isn't their basis in their stock = to their basis in what they transferred?Comment
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www.cpa2biz.com has good article on Valuation of the Stock of a Closely Held Business. Go to Google, type in "closely held stock basis" -- should be 3rd or 4th down. Link too long to detail here. Also check out IRS Revenue Ruling 59-60.Comment
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