C Corp Formation: §351, Stock Issuance, Controlled Groups

Free IRS Enrolled Agent SEE Part 2 (Businesses) lesson in Business Entities and Considerations. 20 min read, ~3,011 words.

§351 nonrecognition requires (1) transfer of property, (2) solely in exchange for stock, (3) transferor group owns 80% of voting and 80% of each class of nonvoting stock immediately after. Services rendered for stock are NOT property; the service provider recognizes ordinary income equal to FMV of stock, and those...