Atlanta, GA asked in Business Law for Georgia

Q: If all members approve a change in ownership structure of a S-Corp can it be effective retroactively (Jan 1/prior year)?

The members of the S-Corp would like to change the ownership structure (which affects distribution ratios), can they vote to made the changes in the operating agreement effective from the beginning of the calendar year? Are they allowed to vote to make it effective from an older date?

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1 Lawyer Answer
Robert W. Hughes Jr.
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Robert W. Hughes Jr.
Answered
  • Lawrenceville, GA
  • Licensed in Georgia

A: Yes

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