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Author: lionsimba Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120809  
Subject: Taking profit from company Date: 8/13/2008 5:40 PM
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Okay - I know, I know, we should have this in a contract, but we don't and now I want to fix this. In short:
The owner of the company my husband has been employed at for 25 years has been "bought" out by my husband and his parter (her son), using the profits as her buy-out. Now after 3 years, the company has profited very well (approx. $4 million) and now my husband's partner wants to leave. I have started my own company 5 years ago and we would like to pay the partner his share (probably over a number of years, for the company does not have all profits in cash account) and somehow move our portion of the profits (cash and equipment) to my company. We have heard of phantom share plan, but even if we back date it, the taxes seem enormous. Any ideas on what sort of plan we should have been in or what we should do. Thank you.
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