AboutIvan Jimenez Expertise Have questions about your venture capital start-up? I can be of valuable assistance. I want your business to be successful and will do what I can to accomplish this goal. Let me save you time.
Experience For nearly 10 years, I have helped venture capital and stock start-ups conceptualize, build and grow into successful ventures via marketing and technology.
Education/Credentials Although my educational background spans from undergraduate studies at Pace University in New York City to more detailed studies at the prestigious Zicklin School of Business at Baruch College (also in New York City) and study abroad at the Universidad Antonio de Nebrija in Madrid, SPAIN, the real credit goes to on-the-job real-world training, in the trenches grunt work and good old "trial and error".
Question I Have a S Corporation with one hundred thousand shares. I plan on selling shares to raise start up capital. I need $20.000 to build the infrastructure of the company. I have a friend who wants to invest in my business. We agreed on 3,333 shares of stock for $20.000. I also have two team team members helping me build the infrastructure as well as operate the company. should I issue them shares and how much? Do I have to pay taxes on the $20.000 when I deposit the check into the corporate account? Can I buy the stock back from the investor after a few years?
Answer Someone is willing to give you $20K for only 3,333 [out of 100,000] shares?! Wow. My suggestion is that you negotiate a similar deal with the other two. Regarding taxes, how you spend the $20,000 will determine if and how much tax you'll need to pay but based on he above numbers, it seems like the value of your company is high, there are partners / investors and you're dealing with significant cash. That said, you should consider hiring an accountant to manage the books for you.
---Ivan
