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Loren
Loren, Attorney
Category: Business Law
Satisfied Customers: 29097
Experience:  30 years experience representing clients .
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Hello. I have a business, it is an LLC, Sole Propriety, and

Customer Question

Hello. I have a business, it is an LLC, Sole Propriety, and it does not have any employees. If I decided to do a transfer of ownership to another individual, will I be legally responsible to forward them all documentations, bank statements, etc. of that business while it was in my name? Thanks.
Submitted: 4 years ago.
Category: Business Law
Expert:  Loren replied 4 years ago.
Thank you for using JustAnswer. I am LawGuy and I will do whatever I can to answer your question.

If you are selling the actual LLC then the buyer would be entitled to financial records of the business.

You would need to separate them out from your personal finances.

You may want to consider, as an alternative, just selling the assets of the business and not the actual LLC, but that is something to discuss with your local counsel or tax professional.

I hope this answers your question.

LawGuy
Customer: replied 4 years ago.

Hello. I am not selling the LLC. I am giving it to someone at no price. Will I still be required to forward the financial records?

Expert:  Loren replied 4 years ago.
You would not be required to do anything. It would be cleaner, though, since it has been reporting income under your SSN, if the successor just formed their own LLC and you dissolved yours. They could keep the same name or register a d/b/a, but you would cut your connection to the business.

LawGuy
Customer: replied 4 years ago.

So if I dissolved the LLC because the income has been reported under my social, the other party can still use the LLC and report the income under their social ... is that correct?

Expert:  Loren replied 4 years ago.
They can file for their own LLC and your LLC can convey the business assets to the new LLC. You are cut cleanly from the business.

LawGuy
Customer: replied 4 years ago.

ok and this will continue to allow me to keep all financials regarding the LLC while it was under my social?

Expert:  Loren replied 4 years ago.
Yes, you are selling only the assets, not the actual business.
Expert:  Loren replied 4 years ago.
I just wanted to check back to see if everything worked out ok.

I am here to assist you if you need anything.

LawGuy

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