|
Posted by W. Wells on April 14, 2008, 12:14 pm
Does anyone know of a newsgroup that could give advise on buying into the
company you work for.
My son has a chance to buy a small percentage of the company he works for
(their main reason is to keep him in the company) and was asking my advise.
About all I could tell him was to possibly find a law company that
specializes in that sort of thing.
Anyone had any experience in this or know a good place to find the info?
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
|
|
Posted by David on April 15, 2008, 5:05 am
> Does anyone know of a newsgroup that could give advise on buying into the
> company you work for.
>
> My son has a chance to buy a small percentage of the company he works for
> (their main reason is to keep him in the company) and was asking my advise.
>
> About all I could tell him was to possibly find a law company that
> specializes in that sort of thing.
>
> Anyone had any experience in this or know a good place to find the info?
>
When I was looking into buying into a local company, I spoke to a well
respected business owner I knew and ask his advice. Perhaps you son
knows a business owner our two he would be comfortable talking to.
--
I do the best I can, but I could be wrong.
please post reply to newsgroup.
David, Williamsport, PA. USA.
http://mysite.verizon.net/vzev1hs3/
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
|
|
Posted by Tad Borek on April 18, 2008, 3:56 pm
W. Wells wrote:
> Does anyone know of a newsgroup that could give advise on buying into the
> company you work for.
>
> My son has a chance to buy a small percentage of the company he works for
> (their main reason is to keep him in the company) and was asking my advise.
This is a complicated area, a good start would be speaking with a CPA or
tax attorney to understand the tax consequences. Many small businesses
are organized as LLCs or subchapter-S corporations and that has a direct
impact on owners' tax returns.
More generally these are often completely illiquid investments so your
son should understand what benefit (if any) there would be to being an
owner. If it leads to more complicated tax returns, no new money, and a
leash that discourages him from moving to a new job, it might not be so
appealing.
These are all matters that a local attorney who works regularly with
small business owners could address.
-Tad
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
|
|
Posted by kastnna on April 18, 2008, 5:02 pm
> My son has a chance to buy a small percentage of the company he works for
> (their main reason is to keep him in the company) and was asking my advise.
You said "buy".
What are the benefits to your son? Is there a salary increase also?
Are there voting rights, and if so, is it realistic that his vote will
ever count? I'm guessing he would get a pro-rata share of the profits.
He needs to review the last few years tax returns. I know of many
small business owners that expense so much stuff through their
business that the company rarely shows a profit and they hardly draw a
salary. Instead they make up for it through "benefits" (i.e. company
vehicles). Is it likely they will ever sell? That's the real value of
ownership in small business.
Perhaps this is a token conscession that has no real benefits designed
to keep your son from leaving. Or perhaps it's the opportunity of a
lifetime. As others said, consult a lawyer and a CPA.
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
|
| Similar Threads | Posted | | More info on Piggybacking | June 29, 2007, 4:59 am |
| Dividend info? | March 14, 2008, 12:42 pm |
| IRA Basis Info? | April 15, 2008, 5:40 pm |
| Finding info on bank's subprime exposure? | January 9, 2008, 3:04 pm |
| Source of info on long term care insurance | October 24, 2006, 7:20 pm |
| Need assistance on business valuation | January 5, 2007, 4:14 pm |
| Bills and business-building | February 15, 2008, 9:03 am |
| SEP plan for side business? | April 19, 2008, 2:40 pm |
| Business Model for Personal Financial Planning | March 29, 2007, 5:00 am |
| Developing a franchise business of financial product | June 6, 2008, 11:55 am |
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap