Last year, I incorporated with two other people who, at the time, were all about the project on which we were working. The project eventually fell flat due to loss of interest on their parts.
I've since come up with a new project and will be proceeding with it myself. The other founders know this. We've discussed things and all agreed that restructuring the current company without them as founders is best since both have other obligations now and are no longer interested in committing significant amounts of time to any kind of start-up.
I filed my yearly business report with the state and took them off as board members. I will be filing my taxes this year at a tax office since I have to deal with the the S-corp taxes as well. I will mention all of this to whomever I file my taxes with to get their advice, but I figured I'd run this by the people here as well.
When adding or removing founders, how do you deal with reporting the restructuring of the share distribution to the IRS?