Article: Selling Corporate Shares ? Be Careful

Selling Corporate Shares ? Be Careful

One of the touted advantages of owning a corporation is the ease in transferring shares. In many cases, this assumed benefit is simply wrong.



Transfer Shares



According to ?experts?, using a corporation has one bid advantage over other entities. The advantage is the ability to freely transfer shares without impacting the business or viability of the corporate structure. Consider the following example.



If I own a 60 percent interest in a general partnership, I can?t just sell it to someone else. In most states, the transfer of more than 50 percent of an interest in a partnership automatically terminates it. With a corporation, however, there is no such prohibition.



Instead, I am free to transfer shares without restriction and the bu...
 

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Selling Corporate Shares ? Be Careful

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