Illinois Giving Small Business To Partner

[pomegranate426]

My partner and I are sole employees of a small sales brokerage firm. He lives in Ohio and our firm is an S-Corp in Illinois. I want to leave the firm to seek a new opportunity. We are an extremely small firm with a small cash reserve. As a gesture of human compassion for my partner who is facing some large personal issues, I want to give him our cash reserve to assist him after I leave. I want to shut down our corporation and bank account. What is the best method to do that so I incur the smallest personal tax consequence? Can I simply write him a check for the cash balance in our corporate bank account? Should I have a final regular payroll check with all the usual tax deductions etc. sent to him? What is the best way to legally execute my intentions? Thank You.

[army judge]

My partner and I are sole employees of a small sales brokerage firm. He lives in Ohio and our firm is an S-Corp in Illinois. I want to leave the firm to seek a new opportunity. We are an extremely small firm with a small cash reserve. As a gesture of human compassion for my partner who is facing some large personal issues, I want to give him our cash reserve to assist him after I leave. I want to shut down our corporation and bank account. What is the best method to do that so I incur the smallest personal tax consequence? Can I simply write him a check for the cash balance in our corporate bank account? Should I have a final regular payroll check with all the usual tax deductions etc. sent to him? What is the best way to legally execute my intentions? Thank You.

How much "little" is left in your account?

If you're partners, you each own half of the "little" left in your account (or pro rata partnership share).

You could simply dissolve the firm.

He could buy your interests for a symbolic $1.00 sale. (This would be my choice, if I were you!)

Either way, discuss this with a CPA or tax lawyer.

There are far too many variables for you to make a decision off an anonymous internet forum.

[pomegranate426]

We have approximately $25K in our account. I'll discuss with a CPA. Thank you.

[army judge]

We have approximately $25K in our account. I'll discuss with a CPA. Thank you.

Good luck with your new venture.

I'm sure your partner will appreciate your generous gift.

You're sewing seeds of love and compassion.



You'll reap a bountiful harvest!!!!


Happy Thanksgiving!