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I have a private C-corp company. I have a guy in Australia who is doing some work for me soon as a contractor. Is it possible to pay him in stock in my US based company? If so, is there anything special I need to look out for?

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    What could he or she do with that stock? I.e. how would it have value to him or her to accept it in lieu of cash? – Robert Longson Mar 18 at 22:15
  • I would imagine unless there is some rules that prevent him from doing anything with it he can do what any US contractor could do with private stock. Hope for an IPO, company buyback, dividend, sell to someone else, etc. – slaphshot33324 Mar 18 at 22:26
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    Those are all things they would have no control over. – Robert Longson Mar 18 at 23:12
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    Have you told the contractor that he will be paid in stock in your company rather than cash, or are you planning on bringing the matter up when the time for payment arrives? "Hey, I got your invoice for $15K but rather than pay the amount in cash, I will give you 1500 shares (nominal value $10/share) in the company." ?? – Dilip Sarwate Mar 19 at 14:44
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    We have discussed payment in stock and will be writing this into the contract. – slaphshot33324 Mar 19 at 14:46

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