i want out of my s corp


G

Guest

can anyone please tell me my options on the following scenario:

I own 50% of an S Corp that is about $1 million in the red. My
business partner owns the other 50% and is not interested in selling
the assets of our company. A sale could net approximately $400,000
which means we would be short $600,000 or $300k each. We have been in
business 5 years and are going through a very tough road where I'm not
as optimistic. Actually, he's not as ready to go back to "work for the
man" as I am.

I am ready to move on with my life, cut my losses and start over.

Can anyone suggest what I should do? My partner says "I'm the one that
wants out" and is making it difficult to come to some sort of closure.
I am also not interested in incurring any further debts or liabilities.

Thanks for your help in advance!

Keith
 
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R

RudeDave

can anyone please tell me my options on the following scenario:

I own 50% of an S Corp that is about $1 million in the red. My
business partner owns the other 50% and is not interested in selling
the assets of our company. A sale could net approximately $400,000
which means we would be short $600,000 or $300k each. We have been in
business 5 years and are going through a very tough road where I'm not
as optimistic. Actually, he's not as ready to go back to "work for the
man" as I am.

I am ready to move on with my life, cut my losses and start over.

Can anyone suggest what I should do? My partner says "I'm the one that
wants out" and is making it difficult to come to some sort of closure.
I am also not interested in incurring any further debts or liabilities.
Since I doubt 50% of the shares is enough to do anything in this situation,
you may want to look into an involuntary chapter 7, wherein the corporate
creditors would petition to liquidate entity against the will of its
shareholder(s).

I've never done one of these, in practice. I can only tell you that it is a
possibility. Be prepared to call a few attorneys before you find someone
that knows much about this type of bankruptcy.
 

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