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I am transferring ownership of a sole proprietor ship LLC…

I am transferring ownership...
I am transferring ownership of a sole proprietor ship LLC from another individual to myself, just wanted to make sure that I had all the bases covered, wanted to basically get a checklist for the transfer.
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Answered in 7 hours by:
4/24/2017
Irwin Law
Irwin Law, Attorney
Category: Business Law
Satisfied Customers: 7,563
Experience: 30+ yrs. representing small business, real estate, probate
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What you are referring to is a single member LLC, rather than a sole proprietorship, which is neither a corporation, partnership, nor LLC. The transfer of ownership of the LLC can be done simply by: 1) entering into a sale/purchase agreement with the new owner; and, 2) the current, single member signs a resignation as such. If an official certificate of membership of some type was issued by the LLC, it can be canceled and a new certificate created for the new member. In most states. Certificates are not a legal requirement for LLCs; finally, 3) , file the necessary form to change the name and address for the LLC's resident agent with the Mississippi Secretary of State.
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Customer reply replied 1 year ago
Very good… would not have to obtain a new EIN number as well with the IRS? And anything else along those lines? And also I know this was a low-paying question your tip will be substantial

Generally, single member LLCs that are not taxed as corprations or S-Corps are not required to have EIN numbers and can be taxed under the single member's tax ID, i.e. Social Security number. Here are the regs. on this subject:

You will be required to obtain a new EIN if any of the following statements are true.

  • A new LLC with more than one owner (Multi-member LLC) is formed under state law.

  • A new LLC with one owner (Single Member LLC) is formed under state law and chooses to be taxed as a corporation or an S corporation.

  • A new LLC with one owner (Single Member LLC) is formed under state law, and has an excise tax filing requirement for tax periods beginning on or after January 1, 2008 or an employment tax filing requirement for wages paid on or after January 1, 2009.

You will not be required to obtain a new EIN if any of the following statements are true.

  • You report income tax as a branch or division of a corporation or other entity, and the LLC has no employees or excise tax liability.

  • An existing partnership converts to an LLC classified as a partnership.

  • The LLC name or location changes.

  • An LLC that already has an EIN chooses to be taxed as a corporation or as an S corporation.

  • A new LLC with one owner (single member LLC) is formed under state law, does not choose to be taxed as a corporation or S corporation, and has no employees or excise tax liability. NOTE: You may request an EIN for banking or state tax purposes, but an EIN is not required for federal tax purposes.

Irwin Law
Irwin Law, Attorney
Category: Business Law
Satisfied Customers: 7,563
Experience: 30+ yrs. representing small business, real estate, probate
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