Business Law

Ask a Business Lawyer. Get Business Law Questions Answered ASAP.

Ask a Lawyer,
Get an Answer ASAP!

Business Law
This answer was rated:

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.
Show More
Show Less
Ask Your Own Business Law Question
Answered in 7 hours by:
4/24/2017
Irwin Law
Irwin Law, Attorney
Category: Business Law
Satisfied Customers: 7,439
Experience: 30+ yrs. representing small business, real estate, probate
Verified

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.
I hope that this information has been helpful to you. If so, would love a 5 star rating. If not, please let me know how I can further assist you. There is no additional charge to you for rating me. A bonus is not required, but is always appreciated.
Thanks again for using JUST ANSWER.

Ask Your Own Business Law Question
Customer reply replied 7 months 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: 7,439
Experience: 30+ yrs. representing small business, real estate, probate
Verified
Irwin Law and 87 other Business Law Specialists are ready to help you
Ask your own question now
Ask Irwin Law Your Own Question
Irwin Law
Irwin Law
Irwin Law, Attorney
Category: Business Law
Satisfied Customers: 7,439
7,439 Satisfied Customers
Experience: 30+ yrs. representing small business, real estate, probate

Irwin Law is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Infolawyer

Infolawyer

Attorney

1,823 satisfied customers

Experienced lawyer

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

1,611 satisfied customers

Run my own successful business/contract law practice.

MShore Law

MShore Law

Attorney

1,233 satisfied customers

Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements

RGMacEsq

RGMacEsq

Attorney

750 satisfied customers

Licensed Texas General Practice Attorney

Barrister

Barrister

Attorney

643 satisfied customers

17 years practicing attorney, JD, BA, MBA

Ely

Ely

Attorney

573 satisfied customers

Counselor at Law.

J.Hazelbaker

J.Hazelbaker

Attorney

393 satisfied customers

Experienced and trained in the area of business law.

< Previous | Next >

Related Business Law Questions
Is there a rule which requires that a corporation (or LLC)
Is there a rule which requires that a corporation (or LLC) must have a lawyer in a civil case?… read more
Damien Bosco
Damien Bosco
3,111 satisfied customers
We have an s corporation. In the shareholder agreement there
We have an s corporation. In the shareholder agreement there is a provision that the corporation must repurchase shares from minority shareholder when offered. Shareholder Agreement further states tha… read more
Roy Hadavi
Roy Hadavi
Attorney
Juris Doctorate
933 satisfied customers
I am the 20% owner of an LLC partnership and my partner
I am the 20% owner of an LLC partnership and my partner (super majority) has not paid me for work done in 12 weeks. Our business agreement states that a member can resign with written notice but I wan… read more
KJL LAW
KJL LAW
Juris Doctorate
1,678 satisfied customers
I formed an llc as a corporate entity along with two
I formed an llc as a corporate entity along with two partners. One of my partner's was name appears as the filing agent in the articles of organization and we never filed an operating agreement. The p… read more
lwpat
lwpat
Doctoral Degree
256 satisfied customers
I want to start a business in Michigan as a sole proprietor.
I want to start a business in Michigan as a sole proprietor. Using the dba of: Office Scrubbs. ( It is an office cleaning business). I am not sure where to look to see if it is ok and legally useable.… read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
I am writing you about our sole proprietor family business
Hello-I am writing you about our sole proprietor family business in Virginia. We have a fine art gallery which handles only the work of our family of artists. Multi-generational. We have been in busin… read more
Ray
Ray
Lawyer
Doctoral Degree
30,487 satisfied customers
Converting my llc business to a c corporation and looking
Converting my llc business to a c corporation and looking for a lawyer to sign the paperwork … read more
Richard - Bizlaw
Richard - Bizlaw
Juris Doctor
3,689 satisfied customers
My S corporation is a member of an LLC which has other
My S corporation is a member of an LLC which has other members in it as well. Can my S corporation be the listed manager of the LLC in Illinois? All the members agree to having the S Corporation as th… read more
RGMacEsq
RGMacEsq
Attorney
Doctoral Degree
750 satisfied customers
I'm looking to buy over one of a company of S" Corporation
I'm looking to buy over one of a company of S" Corporation with a franchise agreement operated one of a tea shop in Murphy, Texas from my acquaintance. Please advise what kind of process do I need. Sh… read more
Damien Bosco
Damien Bosco
3,111 satisfied customers
My family and i have a corporation it is a s corporation we
my family and i have a corporation it is a s corporation we had a family issue in which there was a 50 50 split one member from the other side sold her shares to the other side breaking the time so th… read more
Infolawyer
Infolawyer
Attorney
Doctoral Degree
1,823 satisfied customers
I'm a sole proprietor. How do I do a dba in South Carolina?
I'm a sole proprietor. How do I do a dba in South Carolina? I have been doing biz under my own name for several years.… read more
Richard - Bizlaw
Richard - Bizlaw
Juris Doctor
3,689 satisfied customers
I just created an S Corporation, and i now need to fill out
Hello, My name is ***** ***** I just created an S Corporation, and i now need to fill out a stock ledger but i am not sure how to. When i look online, it always talk about transfering shares but as fo… read more
Richard - Bizlaw
Richard - Bizlaw
Juris Doctor
3,689 satisfied customers
In Colorado if an s corporation has no bylaws and there is a
In Colorado if an s corporation has no bylaws and there is a situation of possible left using a debit card by an employee and 20% shareholder does the State of Colorado use default bylaw and where can… read more
socrateaser
socrateaser
1,031 satisfied customers
Looking to convert my business from a sole proprietor to an
Looking to convert my business from a sole proprietor to an LLC. I currently own a gift shop and as we continue to grow should I be looking at making the change over?… read more
Michael Bradley
Michael Bradley
JD
1,136 satisfied customers
How can I change my LLC from Sole Proprietor to Member LLC.
how can I change my LLC from Sole Proprietor to Member LLC. … read more
KJL LAW
KJL LAW
Juris Doctorate
1,678 satisfied customers
Llc or s-corporation? I am a sole proprietor, mainly selling
Llc or s-corporation?I am a sole proprietor, mainly selling used merchandise online less than $100 K annually.I am considering to increase sales, and change business entity to llc or s corporation in … read more
TaxAttorneytoHelp
TaxAttorneytoHelp
Owner
Doctoral Degree
2,542 satisfied customers
If I elect for s corporation tax status under an LLC how
If I elect for s corporation tax status under an LLC how should my operating agreement be worded in order for me and my partner to manage the entity and all other members to be silent?… read more
LawGuy
LawGuy
Juris Doctor
123 satisfied customers
S-Corporation Businesses Can an S-Corporation run two types
S-Corporation BusinessesCan an S-Corporation run two types of businesses? For example can one S-corporation operate as a real estate agent and a salesman for school products.Thanks, JW… read more
Michael Gonzalez
Michael Gonzalez
JD
520 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x