Transfer LLC Ownership
No_Spam
Is this possible? It will owned 100% by the new owner. How do I do that?
McGyver
news:1114624464.3...@z14g2000cwz.googlegroups.com...
>I want to transfer my LLC ownership from my name into another person.
> Is this possible? It will owned 100% by the new owner. How do I do that?
Assuming you are the sole owner and there is nothing in the operating
agreement making transfer difficult, you can simply use a bill of sale to
transfer your membership interest. The new owner would then revise the
operating agreement. Or you can use a contract called a purchase agreement
containing all of the terms of the transaction. You can transfer the assets
and not the LLC membership interest using an asset sale agreement. Remember
that corporations don't necessarily need to issue paper stock certificates
and LLC's can issue paper membership interest certificates. Therefore, in
general terms, transferring an LLC is not different from transferring a
corporation.
McGyver
No_Spam
can issue. If I issue one for 100% will this do it?
McGyver
>I am the sole owner of this LLC. I have bunch of certificates that I
> can issue. If I issue one for 100% will this do it?
That method would transfer the membership interest unless there is something
in the operating agreement on the subject of transferring interests, or on
the process of issuing certificates. But transferring the ownership by this
method might not be the best way. A formal transfer agreement would have
terms obligating the new owner to indemnify you against all liabilities
arising after the date of transfer, and perhaps even before the date of
transfer. If you consult a local business lawyer about it, you will be
asked a lot of questions which will lead to advice on whether the transfer
is legal in the first place, and on the method of accomplishing the
transfer.
McGyver