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How can I change my LLC from Sole Proprietor to Member LLC.

Customer Question
How can I change...

How can I change my LLC from Sole Proprietor to Member LLC.

Lawyer's Assistant: Can you tell me what state the LLC is registered in?

Wisconsin

Lawyer's Assistant: Has anything been officially filed? If so, what?

I established the LLC in 2015 however I did not actually operate the business until Jan 2017.

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

I want to take on a couple of partners and am not sure of the best structer.

Submitted: 8 months ago.Category: Business Law
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Answered in 7 minutes by:
6/13/2017
Business Lawyer: KLAW, Attorney replied 8 months ago
KLAW
KLAW, Attorney
Category: Business Law
Satisfied Customers: 1,925
Experience: I have over 20 years of experience in commercial real estate law, finance, consumer credit, landlord tenant, and business law.
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G​ood afternoon. I will answer your question.

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Customer reply replied 8 months ago
how can i change my LLC from sole proprietor me member LLC
the LLC is registered in Wisconsin
Established in 2015, however I did not actually operate the business until 2017
Business Lawyer: KLAW, Attorney replied 8 months ago

Do you mean a single member LLC?

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Customer reply replied 8 months ago
how can i change my LLC from sole proprietor me member LLC
the LLC is registered in Wisconsin
Established in 2015, however I did not actually operate the business until 2017no multiple members
Business Lawyer: KLAW, Attorney replied 8 months ago

Ok. Thank you for clarifying.

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Business Lawyer: KLAW, Attorney replied 8 months ago

Hello and welcome to Just Answer. No attorney-client relationship or privilege is formed by speaking to an expert on this site, the answers are for general information. By continuing, you confirm that you understand and agree to these terms.

A little background. In Wisconsin, LLC partners are called "members”. There are several things you must do to add the member. The Articles of Amendment cannot be filed to add or remove members, managers, organizers or owners of the limited liability company. When you add members and other manager information it must be set forth in the operating agreement. In Wisconsin, the operating agreement is not filed with the Department of Financial Institutions. If you are remaining as the Registered agent for the LLC then you do not have to file Form 504 for amending the original Articles of Amendment for your Limited Liability Company which you previously filed.

That said, you will also have to draft an operating agreement between you and the new member. Under the default procedures found in the Wisconsin LLC statute, any individual who acquires an interest in the LLC automatically becomes a member. However, you should daft an operating agreement between you and your co-member regarding specifies each of your capital and work contributions, the profit and ownership split, buyout and termination provisions.

Also, since you probably already registered your single-member LLC for an employer identification number, or EIN, and you chose the default pass-through tax status, then you must file Form 8832 with the IRS because adding members to your LLC changes the default tax status to a partnership.

I hope this clarifies and answers your questions.

It was a pleasure assisting you today, and I would appreciate if you would rate my service, so I will receive credit and payment for my work. After you rate the question you can ask follow up questions, and you will not be charged any additional money for the follow-up questions.

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Business Lawyer: KLAW, Attorney replied 8 months ago
If you have any other questions please just ask
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