You’re ready to sell your company shares, but where do you start? We’re here to make the process easier for you.
We’ve done this countless times and simplified the process to get you the best price and the easiest exit.
Before you start selling shares held in a company, you’ll first need to complete our online share sale form. It’s a straightforward process and allows us to handle the administration on your behalf.
Once that’s done, each company director must complete an online ID check. This includes accepting terms and conditions, leaving a voice message, and providing ID verification. This process ensures security and confidentiality.
So, how long does it typically take for these share transactions to be completed?
If you opt for an express share sale, you’re looking at a same-day completion. This option is ideal if you’re in a hurry to sell your shares.
On the other hand, the value service usually sells shares within 1-2 business days. This is a great choice if you’re not pressed for time.
Once the shares are sold, funds are typically transferred to your bank account within three business days. Timeframes may vary based on market conditions and the type of transaction and shares being sold.
Our standard brokerage fees apply when selling shares in a company.
Additionally, there may be a surcharge paid. For instance, selling shares held in a company’s name often incur a surcharge of $50 or 0.5% of the transaction’s value. This added cost covers the additional complexity associated with such transactions.
Importantly, no hidden fees are involved. The best rates apply, and cash is deposited directly into the bank account.
It helps to understand the concept of company shares and the role of companies' shareholders. Essentially, shares represent a portion of ownership in a company. These are often bought and sold on the stock market. Shareholders, the individuals or entities owning these shares, thus have a stake in the company.
As shareholders, you’re entitled to a part of the company’s assets and earnings. Your influence on the company’s decisions correlates with the number of shares you hold. Large shareholders often have voting rights at shareholders’ meetings where crucial business decisions are made. Being a shareholder of private stock, you’re also privy to dividends, a share of the company’s profits.
Understanding this interplay between shares and other shareholders is vital when considering selling shares held by a company.
Here are a few things you should be aware of before you start the process of selling shares in a private company.
Understand the Value: Before selling, get a clear valuation of the shares. This is something we can help with.
Know the Tax Implications: Selling shares can have capital gains tax implications. It's essential to understand how the sale will impact your tax situation and plan accordingly.
Be Aware of Market Conditions: External factors, such as economic downturns or industry-specific news, can influence share prices. Stay informed to make educated investment decisions.
Document Everything: Ensure that details of all agreements, negotiations, and transactions are well-documented. This will help with legal protection and tax submissions.
In a public offering, you’re selling shares to the general public, often through a stock exchange. However, in a private sale, you’re selling shares directly to a specific investor or group of investors.
In an Employee Stock Ownership Plan (ESOP), you’re selling shares directly to your employees. It’s a great way to reward them, ensure business continuity, and even offer you some tax advantages.
When you sell shares held by a company, potential tax implications may arise. You’ll possibly face capital gains tax on the profit made, which varies depending on the duration you’ve held the shares. Always consult a tax advisor.
To navigate legal and regulatory considerations, you’ll need to comply with securities laws, understand potential restrictions, consult with legal counsel, and be aware of any reporting or disclosure requirements and insider trading restrictions.
To determine your family company shares’ fair market value, you’ll need to evaluate financial statements, consider assets and prospects, and seek advice from financial advisors. Comparing similar industry transactions can also help.