Legal Question in Business Law in Nevada

Re: Lease option vs Selling dba in an S Corp.

I am uncertain what you mean by "lease optioning" the business, but here is one approach that I have utilized to accomplish the end I believe you intend.

You can enter an operating agreement with your independent contractor, allowing him to take over the day-to-day operations of the business with a pre-determined sharing of revenues or straight salary for him as general manager. The agreement can include a "first right of refusal" in your contractor to buy the business, and an accompanying buy-sell agreement that would detail the terms of such a purchase (including what happens if you get a competing offer in the meantime!). State and city business licenses and the dba filing can be changed to reflect him as the responsible party, but with ownership remaining in the corporation.

When and if he decides to exercise the option to purchase the corporation, it can be effected by simply transferring the shares of stock you hold in exchange for whatever consideration you agreed upon when you entered your contract together.

I would very highly recommend retaining a competent business lawyer to negotiate and draft the contracts and to handle the eventual stock sale. There are many details you would not want to overlook, as neglecting any one of them could result in very real damages to you. Your independent contractor should also retain separate counsel to review the agreements from his perspective, and you may wish to employ an escrow holder for the transfer, if and when the option is exercised.

Please let me know if I can be of assistance. 775-358-1958