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  1. #1
    Join Date
    Jun 2008
    Posts
    2

    Default Selling a Share of My Business

    My question involves business law in the state of: California

    -I'm currently a 60% owner of a Chapter S Corporation, my business partner owns the remaining 40%.
    -The business is currently a 'single' frozen yogurt store and a trademarked name

    We would like to sell 20% of the 'single' location, and retain full ownership of the trademark, rights to use the name, etc.; all we want the new investor to own is the assets and % of profit from the first store. We want this because we plan on opening new stores and do not want them to have an ownership interest in the name / development rights, etc.

    Question:
    -How can we set this up so the ownership rights are clearly defined?

    Answer:
    -We think we should setup a 'holdings' chapter S corp that will own the name, and the store respectively; we'll then sell 20% share of the our sub corporation...

  2. #2
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Selling a Share of My Business

    You will need to contact a contract attorney that specializes in business law to be sure you get everything set up correctly and as you want it.

  3. #3
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Selling a Share of My Business

    One option that comes to mind is setting up the original store as a subsidiary of your new venture. The parent can license its trademark to the subsidiary. But I agree, it makes sense to have a lawyer draft up your contracts, how costs will be shared both between co-owners and between parent and child companies (e.g., the original store's responsibility for advertising costs, rent, etc.) and quality/supply chain issues, to name a few.

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