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

Free IRS Enrolled Agent SEE Part 2 (Businesses) lesson in Business Entities and Considerations. 21 min read, ~3,146 words.

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