S Corp Ownership Change

I am currently working for my dad in his s corp but we need to transfer 50% of the shares to me since we will be operating as partners from now on. We want to keep the S Corp but I would be the CFO and he would be CEO. How would we do this officially since we also want to apply for a business credit card using my credit.


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You need to visit a lawyer.

An S-Corp can have more than one owner, that's no problem. But your Dad will have to sell or assign part of his stock to you.

Visit a lawyer to have this drawn up for you.

On the books, you may simply reduce his ownership (owners equity account) and set up yours, or you may have a loan, or stock to deal with.

I'd have to know the specific transactions to help you make those accounting entries.

Hope that helps!

Kathy

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