What forms are needed to transfer a corporation to a son?

Full question:

What form is required to transfer a corporation and its assets to a son? I need information and the forms to transfer a private, domestic corporation and its' assets to a son.

• Category: Corporations
• Date: 04/07/2025
• State: California

Answer:

The forms required to transfer a corporation and its assets depend on various factors, such as whether there will be a name change or new shares issued. Typically, the board of directors must pass a resolution to approve the transfer, and minutes should be prepared to document this action.

A stock purchase agreement is often used, where the current owner agrees to sell their shares to the buyer (in this case, the son). The Articles of Incorporation must also be filed with the state to officially incorporate the business. This document generally includes the corporation's name, address, purpose, and the number and type of shares to be issued.

Amending a corporate charter varies by state, corporate bylaws, and the type of corporation. Generally, it requires passing a resolution and filing an amended set of articles with the secretary of state. Each ownership portion of a corporation is known as a share of stock, and shareholders have rights, including voting on corporate matters.

Bylaws are essential as they outline how the corporation will operate, including rules for officers, directors, and shareholders. While states do not typically require bylaws to be filed, corporations must adhere to certain formalities, such as updating corporate records.

A buy-sell agreement can help determine the price for ownership interests, either through a set formula or an independent appraisal. This agreement also outlines the terms for transferring ownership interests. Having a buy-sell agreement reduces the risk of disputes during ownership transfers.