A question about owning an equity in a company

Discussion in 'Growing and Managing a Business' started by LanaDan, Jan 21, 2014.

  1. LanaDan

    LanaDan
    uix_expand uix_collapse
    New Member

    Joined:
    Jan 21, 2014
    Messages:
    1
    Likes Received:
    0
    Hello everyone,

    I own a small consulting company. Currently I have a few equity deals, where I get X ownership of the company in trade for providing consulting services.

    It puzzles me but all of the initial research and everyone seems to suggest that for me to own equity all that needs to happen is:

    on the company's end, when filing the incorporation or reworking share ownership, they list my company along with shares or percentage and I sign a piece of paper.
    To me that's odd. It just feels too simple.

    Is this correct? any information on this subject would be highly appreciated. Thank you in advance!
     
  2. bizwizgenie12

    bizwizgenie12
    uix_expand uix_collapse
    Member

    Joined:
    Feb 26, 2012
    Messages:
    54
    Likes Received:
    3
    Is It A Closely Held Corporation?

    Hi,

    Any closely-held/privately-held corporation usually have a lax approach towards transfer of shares. This kind of behavior is not possible in public corporation where shares are publicly traded. You may check up on the ownership pattern of the company whose shares you own, talk to the stock broker who may have advised you on this deal.

    Hth.
     
  3. Changed Creation

    Changed Creation
    uix_expand uix_collapse
    Premium Member
    Premium Member

    Joined:
    Sep 3, 2013
    Messages:
    153
    Likes Received:
    66
    Hi LanaDan. I think you should follow your gut-instinct that is already telling you that you don't have enough info "...that's odd...feels to simple". I also think you should get more clued up with what you are signing for. Every country has different laws regarding business vehicles and I'd suggest you get some consultation in if that really is an optimal choice for you. At best you can walk out knowing that next time it comes to signing, getting advice may cause you to cahnge the wording to suit your situation better. It really is worth the money to get paid advice for this.
     

Share This Page