next step for c-corp
i initially filed a LLC and later classified it as c-corp.
now how do i go about giving a 5% stake to CEO and 95% to the only investor in the company?
Thanks for the question. In order to determine the proper next steps to give a 5% stake in your C-Corp to your CEO and a 95% stake to the sole investor, you would need to consult the governing documents for your company. This may take the form of an operating agreement, shareholder agreement or another document. My expectation is that, in order to make the ownership changes you’ve outlined, you will need to have a vote of the current shareholders approving the changes. If, however, you’re still putting together the new governing documents for your C-Corp, you might use this as an opportunity to outline the company’s current ownership structure by including it in those documents and issuing shares accordingly.
I hope this helps,