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Tax.appeal.168, Tax Accountant
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I need to transfer ownership in my business to my spouse so

Customer Question

I need to transfer ownership in my business to my spouse so I may collect social security in the state of Georgia. What forms do I need to fill out for a sole propriership?
Submitted: 1 year ago.
Category: Tax
Expert:  Tax.appeal.168 replied 1 year ago.

A sole proprietorship is a flow through entity, meaning that profits and loss from the business flow through to the taxpayer. A sole proprietorship is not transferable. SEE BELOW:

A sole proprietorship is a single-owner business. When you start a sole proprietorship, the law does not recognize a separation between you and your business. You and your company are considered the same entity. This is why you are personally liable for your sole proprietorship's debts. It is also the reason why you can't give your sole proprietorship to anyone else, as it is recognized as part of your identity. Giving your sole proprietorship to someone else would be like giving your Social Security number to someone else.

Just because you can't give away your sole proprietorship doesn't mean you can't give away your business. You are allowed to give away your company's assets to anyone you want. If the new owner wants to keep running the business, he can start up his own sole proprietorship. You can also convert your company into a multiple-owner structure such as a corporation or limited liability company. These structures let you continue running your business while transferring some ownership to others.


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