Finding A Great Attorney

Are You Being Gifted Shares Of Your Company? Hire A Business Lawyer First

20 July 2017

Sean Miles

If you have been offered some gifted stock and ownership in your company, but you aren't sure if you agree with the terms of the arrangement, you want to get your own business lawyer. If the company or other partners are suggesting that you talk with their legal representation, it's best to get an outside opinion of the situation and to figure things out for yourself. Here are some of the things that you want to talk with the lawyer about so you can make the best decision about owning the company:

Voting Shares

Companies will often offer an employee that they don't want to lose non-voting shares so that they can get some of the financial benefits that come with being the owner, but they don't have to worry about the employee getting involved in company affairs. Find out what type of ownership you are going to have, and work with your lawyer to leverage the terms that you want, so you can get the money and the power if you want it.

Buyout Options

Just because you are considering being an owner now doesn't mean that you may want to be an owner down the road. Have it put into a contract that if you aren't happy after the first year or two, that you can have the original owners buy back your shares. This way you will have a lump sum of money when you decide that you want to walk away, and they will be happy you aren't trying to gift the shares to anyone else.

Responsibilities

What type of responsibilities are going to come with being an owner or shareholder of the business? If this requires that you have to claim a set amount of money that you aren't taking home, or that you have to dedicate a lot more of your time for a small percentage of ownership, this may not be worth your time and money. Talk with the lawyer about coming up with the terms that you want.

Being gifted shares is a great way to put some money away if the business takes distributions or bonuses at the end of the year for the owners, and you can end up making a lot of money if your company has the potential to do so. Don't sign the first thing that they put in front of you, and instead, you want to meet with a lawyer to discuss your options. 

Contact a law firm like Rudolph and Chonoles LLP for more information and assistance. 

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