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In order to retain the services of Tekashi, a key employee in Teds sole proprietorship, Ted contracts with Tekashi to make him a 30% owner.

In order to retain the services of Tekashi, a key employee in Teds sole proprietorship, Ted contracts with Tekashi to make him a 30% owner. Ted incorporates the business receiving in return 100% of the stock. Three days later, Ted transfers 30% of the stock to Tekashi. Under these circumstances, 351 will not apply to the incorporation of Teds business. True or False? Please explain.

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