a) Thanks when you say 'assign the various interests of parties' 2, 3 and 4 to party1'
How is this legally done? Does party 1 buy the other companies in exchange for stock and then are the other companies closed or does it buy all assets and good will only
A: A sole proprietorship has no separate existence from it's owner, so in that case, the owner assigns his/her interest in every asset and liability to party 1's corporation, and party one's corporation agrees to assume each liability. Ideally, it would be better for the liabilities to be paid off from the owner's assets before the transfer, and then only transfer net assets -- but, sometimes this isn't possible.
With a separate company, such as an LLC, the owner would once again, assign his or her entire interest in the LLC to the corporation in exchange for stock. The corporation would then become the sole owner of the LLC, and it would then control the LLC assets and pay off the liabilities.
and your second option:
b)forming new corp.
Is this as simple as making a new corporation?
A: Yes (assuming that you find forming a new corporation to be simple).
How does the new company obtain all other entities?
A: In the same manner as above, only now, party 1 would contribute 100% of his/her shares to the new corporation in exchange for shares in the new entity, and then the old entity would be dissolved, after all of the assets and liabilities were assigned to the new corporation.
Can we simple transfer all other assess, customer list etc to new company, close all old companies and run everything under the new company?
A: Yes. See above.
Note: There are "assignment of interest" forms all over the internet that you can use to accomplish the property interest transfers. However, if you want to get this done right the first time, I suggest that you hire a qualified CPA with business merger and acquisition experience to adjust the books on each individual's and/or business entity's accounts. This is mostly an accounting problem, in my view -- and it calls for a CPA.
Hope this helps.
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