Can I give my s corporation to my son? California
Bryan Zlimen ∙ June 18, 2019
Laws regarding corporate ownership vary from state to state, so be sure to check with your local laws for specific steps and requirements on this, but generally a business owner can gift her/his shares of their business to others as long as the gift is not prohibited by the company's governance documents (often a Buy-Sell or Shareholder's Agreement). Note that if the shares are being given as a gift, there may be gift tax consequences for the person making the gift.
The process generally includes creating internal documentation (resolutions, minutes, stock register, stock certificates) showing a record of the gift and approval by the other shareholders or company.
Please note that I am not licensed to practice law in your state. The information above is only general information about corporate governance and is not intended to serve as legal advice. For advice and specific steps, a more in-depth understanding of the circumstances would be required. I recommend you check out LegalZoom’s Legal Plan. Membership provides access to provider attorneys in your state that can discuss with you your specific situation, your rights, and applicable State and Federal laws.
Thanks for the feedback! Change answer
Need help? Contact an independent attorney from our network.
ATTORNEY ADVERTISEMENT: This portion of the LegalZoom website is an advertisement for legal services. LegalZoom does not endorse or recommend any lawyer or law firm who advertises on our site. Prior results do not guarantee a similar outcome. The information contained in this advertisement is not legal advice. Any information you submit through this site may not be protected by attorney-client privilege and may be provided to attorneys for the purpose of determining your needs for legal services. All case evaluations are performed by a participating attorney.
This advertisement and all attorney services may be subject to additional terms and conditions, located on the website of each attorney. Please visit the website of the participating attorney in your area for more details. Any arrangement made by you and your attorney is strictly between you and them.