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 Richard Your Own Question
Richard, Attorney
Category: Business Law
Satisfied Customers: 55604
Experience:  32 years of experience practicing law and a businessman.
Type Your Business Law Question Here...
Richard is online now
A new question is answered every 9 seconds

Can I change my business from solo perpryter to a llc or i

This answer was rated:

Can I change my business from solo perpryter to a llc or inc
Hi! My name is XXXXX XXXXX I look forward to helping you!

Yes, you can easily do this. You simply need to form the LLC or corporation..whichever you select...and then transfer the assets and liabilities of your sole proprietorship to the newly formed entity. In the event of real estate, you will make the transfer by deed; and in the event of non-real property, you will make the transfer by assignment of interest. This will be a non-taxable transaction under either Section 351 or Section 721 of the Internal Revenue Code, depending upon which type entity you form. To form the entity, you will need to: i) file Articles of Corporation or Certificate of Formation with the Secretary of State; ii) prepare either corporate bylaws or an LLC operating agreement setting forth the operating provisions...these can be very simple since you are the sole can get these inexpensively from either or; iii) obtaining a Taxpayer Identification Number from the IRS ... this is free... online from the following IRS website: ; iv) opening a bank account with the foregoing documentation; and v) transferring the assets and liabilities to the newly formed entities.

Thank you so much for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as OK, Good or Excellent (hopefully Good or Excellent). I thank you in advance for taking the time to provide me a positive rating!
Richard and other Business Law Specialists are ready to help you
Thanks so much for the positive rating and the generous bonus! I appreciate your kindness and the opportunity to serve you!