Q: I need to sell off a one restaurant location operating under a single corporation (the same EIN) w 2 locations.
I own 3 restaurants (one of which my wife and I bought in 2014. The other two I had before we married). This 3rd restaurant operates under one of my original corporations formed in 2005, and she would like to buy me out (we are divorcing amicably) and I need the expertise to properly set her up as a new owner. Currently, she is not an officer of the corporation nor has any stock in it. We agreed I will keep the other two restaurants (one is a separate S-corp, and the other is also a S-Corp using the same EIN that my wife wishes to buy me out of).
So basically we need to legally spin-off this corporation and start her in a new business entity (LLC or S-Corp or whatever) and then proceed with how to divide our assets. We spoke with a mediator but he doesn't handle business law and cannot do much for us other than help us divide our assets as we agree on.
Please let me know what we need to do to get this process started. Thank you for your time.
A: First of all, congratulations on working this out amicably. Dividing up these assets will involve at least one written agreement between the two of you, and should also include the formation of a legal entity by your wife, as you indicate. I strongly encourage you to seek legal counsel to assist the two of you in getting your agreement in a writing that addresses all aspects of your agreement. Since you have the assistance of a family law mediator, you should make sure the attorney you choose is very familiar with all aspects of the types of business you are describing.
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