Client A owns 100% of ORIGINAL S-Corp, in existence for 10 years. There are 100 shares outstanding (authorized 200k). He wants to bring on Client B as an equal into the S-corp. What are the best options of doing this?
1. Determine equity of S-corp per share, have Client B purchase 100 shares at the determined per share price, net effect is each own 100 shares.
2. Create a new PARENT S-Corp, which is owned 50%/50% by Client A and Client B. Have it elect for ORIGINAL S-Corp to be QSub.
3. Dissolve ORIGINAL S-Corp, create new S-Corp with new 50%/50% arrangement.
I handle quite a few single person S-corps, but I don't much experience with reorganizations and this has me confused.