How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Damien Bosco Your Own Question
Damien Bosco
Damien Bosco, Attorney
Category: Business Law
Satisfied Customers: 2187
Experience:  Helping you with your legal questions.
Type Your Business Law Question Here...
Damien Bosco is online now
A new question is answered every 9 seconds

I am currently a single member LLC. When adding a member that

This answer was rated:

I am currently a single member LLC. When adding a member that is considered an equal partner, do I need to restructure as a partnership? In doing so does it affect the limited liability status of the business? Is there a need for a new EIN with the IRS?
Hi and Welcome! My name is XXXXX XXXXX will be assisting you. I am happy to help you. There is no reason for you to restructure an LLC as a partnership (although you should check with your accountant what is the best way to handle taxes: as a corporation or a partnership). Adding a member does not affect the limited liability status of the business (it actually increase the protection to you. There is no need for a new EIN (you can double check this with you accountant too). I hope this helps you, Regards, Damien
Customer: replied 3 years ago.

So you're saying you're not sure and that I should ask my accountant?

Hi Chris: I am definitely sure you can maintain the LLC with adding another partner and you do not have to dissolve it and become a partnership. I am definitely sure that you maintain the limited liability and in fact limit the potential risk someone would pierce the corporate veil to go after you personally. I just want you to check with your accountant for how you want to account for distributions. Most likely you are already structured as a partnership for distribution reasons. I hope this help. Please provide a positive rating so to remove the negative rating. The negative rating reflects poorly on me when I am doing my best to help you. Thanks, Damien
Damien Bosco and 5 other Business Law Specialists are ready to help you

Related Business Law Questions