Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-31-2009, 02:24 PM
Junior Member
 
Join Date: Jan 2009
Posts: 1
Can 1 50% owner force the dissolution of S Corp?

I am an equal partner in an S corp. My partner has recently decided he no longer wants to be in business with me. He has proposed the split of clients, operations, debt, etc. We currently have $125K in debt and I do not agree with the timing or the proposed split of things.

Can he force me to do this?


Last edited by bodell29 : 01-31-2009 at 02:26 PM. Reason: wrong forum


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 01-31-2009, 08:59 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,413
Blog Entries: 3
Your partner cannot force you to terminate the S Corporation. But, he can definitely withdraw as a partner. The timing consideration is not a relevant concern for the Tax Courts.

I suggest that you depart company and retain the S corporation as a 100% shareholder. There is no point to continue in the partnership with him considering his insistence that he wants to quit. It will not be a pleasant experience to continue to work for someone who does wish to appreciate your being a business relationship with him.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
S Corporation Dissolution angelng S-Corporation 0 01-12-2009 03:15 AM
$120 Meal for owner/employee and client - how much deductible? Section19 C-Corporation 1 12-25-2008 03:04 PM
Dissolution of S corp obxwavecrasher S-Corporation 0 12-20-2008 12:53 AM
S-corp dissolution procedure solarstorm24 S-Corporation 0 11-01-2008 10:24 AM
IRS will force Brokers to report basis in 2010! TaxGuru For 2008 0 08-15-2008 07:46 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning