W. Wells wrote:
> Does anyone know of a newsgroup that could give advise on buying into
the
> company you work for.
>
> My son has a chance to buy a small percentage of the company he works
for
> (their main reason is to keep him in the company) and was asking my
advise.
This is a complicated area, a good start would be speaking with a CPA or
tax attorney to understand the tax consequences. Many small businesses
are organized as LLCs or subchapter-S cor****ations and that has a direct
impact on owners' tax returns.
More generally these are often completely illiquid investments so your
son should understand what benefit (if any) there would be to being an
owner. If it leads to more complicated tax returns, no new money, and a
leash that discourages him from moving to a new job, it might not be so
appealing.
These are all matters that a local attorney who works regularly with
small business owners could address.
-Tad
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