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Good morning. 1) You do not need to file anything with the state for the admission of the new member. But, you will need to do an Assignment of Interest assigning the investor the interest in the LLC. And, you will now need the LLC to file its own tax return and the tax items will then be passed through to the members via a K-1. The LLC will still pay no taxes itself. 2) You will need to amend your Operating Agreement to provide for the new investor and that agreement will set forth the agreement between the two of you regarding distributions. You will then make the distributions pursuant to the terms of that operating agreement.
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If I complete an Assignment of Interest assigning the investor the interest in the LLC, and then file a tax return for the LLC for the tax items to be passed through to the other members via a K-1 -
Will the other investors end up "double taxed" if I have a K-1 given to me from the original distribution assigned to the SMLLC and then file a tax return under the LLC so that I can distribute the money to the silent investors?
So if the original LLC gives me a K-1 and then my LLC completes a K-1 to cover my invetors, will the original LLC now know that there is more investors involved?
And will I still be classified as a SMLLC with a silent investor?
You will no longer be a single member LLC once you have another member/investor. The original LLC will simply issue the K-1 to your LLC...it need not know the members of your LLC.
I would appreciate it if you would please click the GREEN ACCEPT button so that I receive credit for my work; otherwise, though you have made a deposit, I do not receive credit.
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