I suggest the first order of business is to determine if you have any objections to the articles of formation of the LLC and terms under which it will operate. Even though the LLC has been formed, the existing business cannot be moved to it with the approval of the existing company. You should also be aware that an integral part of an LLC is what is called the Operating Agreement. This is the equivalent of a partnership agreement and sets forth how the business will be operated. It often incorporates things that would be in a shareholder agreement. It is a pretty extensive document. That is where you need to focus your attention to determine that the new entity will work as you and your partner intend.
Until that is accomplished, the business should continue in its present form. As I indicated the existing corporation has certain rights to protect its business which will prevent the majority owner from unilaterally changing the business by putting it in the LLC. However, if you get into these issues you will need to retain counsel. Hopefully, you can work out the terms of the way you and your partner will operate. The LLC is a more flexible form of organization than the S Corp. so it has advantages.
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