Bailey & Thompson Tax & Accounting PA
Little Rock, AR
Giovetti & Giovetti, CPAs
Custom Tax Service
Nelson Tax Accounting, Ltd
Basically there are restrictions on seller financing and limits it to "one a year" or "three or fewer a year". The three or fewer option has stronger regulation than the one per year and the instructor was advising strong caution.
The people that...
I have seen this several times, but only for 2 reasons -- the stock is compensatory in nature and the restrictions result in tax deferral and/or the majority shareholders want the right of first refusal on any future stock sale.
I found this article on the subject of restricted stock for start-ups that may be helpful in terms of why this technique would be used and how your client may fit into this type of scenario: http://www.calstartuplawfirm.com/business-lawyer-blog/restricted-stock.php...