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We are three co-founders owning 100% of a business and want to bring an additional person as a shareholder on part of our business only; is that possible? so, company A is owned by X,Y,Z; part of company A is "service B" and we want to give a share of "service B" to that additional person. Any advice on how we do that is welcomed. |
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You can't directly do that within a single structure. The cleanest way, if you can spare the $2000 it will cost you, is spin-off a company that is partly owned by the parent company and this new associate. If that is too complicated for you, you want to sign some kind of revenue share agreement instead. Think of it as the 4th contributor would be a sales rep for you: any money that comes in for that product, he gets a piece of it. It's not a strong long-term relationship, but it's a quick hack if that's what you want. |
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There are many ways to structure these sorts of things depending on the business and the shareholders. A bit more detail would help you get some more useful feedback |
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thanks for the prompt reply. What sort of detail you need? The company is registered in the UK; we three are all co-founders and owners of the business (100% equity), the company is a limited company (by shared capital) in UK companies law jargon; the "service B" I am referring to, is a web based service (a dot com) and we want that additional partner to come onboard but only for the dot com. Let me know if more details are needed.
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I would suggest spinning off the business and allocate ownership of 2/3 to your existing company and 1/3 to the partner of this protion of the business. Seek legal and accounting councel. |
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thanks for your replies, so far. I will explore the spin off option; do people have experiences on how to do this in the UK? (alain: how did you come up with the $2K figure?) |
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