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Dear Stephen, :
Shares of stock in a corporation are not issued arbitrarily--corporate
stock is generally issued in exchange for property or services.
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Section 504 of the New York Business Corporation Law states, in part,
that "consideration for the issue of shares shall consist of money or other
property, tangible or intangible; labor or services actually received by or
performed for the corporation or for its benefit or in its formation or
reorganization; a binding obligation to pay the purchase price or the
subscription price in cash or other property; a binding obligation to
perform services having an agreed value; or a combination thereof."
Joint Tenants in Common accounts are typically set up for stocks and
other equities to address what happens to the interest owned by a
tenant/spouse in the event of his or her death. In the event of the death of
one of the tenants/spouses, the deceased's interest passes to his or her
estate and not to the surviving tenant/spouse. The surviving tenant/spouse
is only entitled to his or her pro rata portion of the account before the
death of the other.
One common asset protection strategy that comes to mind is the use of a
family trust, but you should consult an attorney for asset protection
strategies and advice on structuring the ownership of your corporation.
Chrissie Mould
About the PowerHomeBiz.com Guide:
 Chrissie
Mould has over a decade of experience in business administration and
startup business consulting. She has helped launch companies in multiple
industries and has managed corporate administration and governance for
public and private companies. She is an incorporation specialist with
MyNewVenture.com LLC. The company provides low-cost incorporation services
to entrepreneurs and small businesses. Visit
www.MyNewVenture.com to form
a corporation or LLC.
The opinions expressed in this column are those of the
author, not of PowerHomeBiz.com. Users should not treat the Guide's response as
legal, accounting, or professional advice as all answers are intended to be
general in nature. Such advice can only be properly given by qualified
professionals who are fully aware of a user's specific geographical areas or
circumstances, such as an attorney or accountant.
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