Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I am the 50% owner of a company in NJ. The partnership is…

Customer Question
I am the 50% owner...
I am the 50% owner of a company in NJ. The partnership is between me and my brother. I want to forgo my ownership and get my name off the company. How do I go about doing that.
Submitted: 9 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Customer reply replied 9 months ago
08 November 2017 07:40
I am 50 % owner of a NJ based company. My partner is my brother. We do have equity and also debt against equipment that we are paying down. I haved signed personal notes for some of the equipment we are paying off. The notes will be paid off in about another year. I want to forgo my ownership in the company. I do not want anything from my brother. I have other companies that are taking most of my time up and just want to get my name off of this particular partnership. How do I go about doing that. Do I need to hire a lawyer? Is there a procedure than can be started to decrease my ownership? Basically what are the steps I need to take? Thanks
Answered in 10 minutes by:
11/9/2017
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 9 months ago
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
Satisfied Customers: 2,775
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA
Verified

Hello! My name is ***** ***** I will be able to assist you today.

First, you and your business partners need to vote to dissolve the partnership. Record the decision in writing.

You'll want to discuss the responsibilities of each partner regarding the debts and any future liabilities of the partnership. For instance, if Partner #1 pays off his half of the partnership's debt but Partner #2 fails to pay off his half (or files for bankruptcy), creditors can still come after Partner #1 for the rest of the partnership's debts.

General Partnerships ending their business operations should take care to properly close out their tax liabilities by filing the applicable changes to their tax/employer account

Here is a link to "ending your tax registration in New Jersey"

http://www.state.nj.us/treasury/taxation/pdf/pubs/sales/anj13.pdf

If you formed an LLC in New Jersey then click on the link below to ACCESS THE ONLINE FILING SYSTEM

http://www.state.nj.us/treasury/revenue/dissolve-cancel.shtml#undefined

Ask Your Own Tax Question
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 9 months ago

If you did not form an LLC or corporation then you merely need to dissolve the partnership with a vote and put the vote and determination in writing. Then you need to close out any tax liabilities the partnership may have.

Ask Your Own Tax Question
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 9 months ago

New Jersey also allows you to report closing a business online using the link below. "closing a business" is a blue hyper link on the mid to bottom left hand side under "business filings"

https://www.njportal.com/dor/annualreports

Contact information for the state of New Jersey tax registration.

Customer Service Center at(###) ###-####

e-mail***@******.***

http://www.state.nj.us/treasury/taxation/

If you need further information please let me know.

Ask Your Own Tax Question
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 9 months ago

Hello,

Do you have any follow up questions? Would like for me to expand on my answer above? Please let me know! If you have no further questions and at the conclusion of our conversation please take a moment to accept the answer by rating the answer with three stars or more. A positive rating of five stars is always appreciated. Thank you!
Ask Your Own Tax Question
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 9 months ago

At the conclusion of our conversation please take a moment to accept the answer by rating the answer with three stars or more.

A positive rating of five stars is always appreciated.

Thank you!

Ask Your Own Tax Question
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 9 months ago

Hello,

If you have no further questions please accept the answer so I may be credited for assisting you.

Thank you

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Chad EA, CDFA®, CFP® Your Own Question
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
Satisfied Customers: 2,775
2,775 Satisfied Customers
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA

Chad EA, CDFA®, CFP® 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:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

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

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I want to start a US business with a foreign business as the
I want to start a US business with a foreign business as the 100% owner so that I can rent out properties that I own via air bnb. I want to understand how to do that in a tax efficient way … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,453 satisfied customers
Tax Experts Rental building was purchased by partnership
Tax ExpertsRental building was purchased by partnership (LLC). Ownership structure is 50% A, 25% B, 25% C. B and C will be replaced with a new owner D (single member LLC). New owner will pay off B and… read more
socrateaser
socrateaser
1,031 satisfied customers
I have a small concession business with my partner 50/50
I have a small concession business with my partner 50/50 years ago we bought a sprinter van for the business. we could not get a loan for a vehicle since we where a brand new business. my partner got … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Company wants to purchase 50% of Company A for $X, but does
Company B wants to purchase 50% of Company A for $X, but does not want the liability (known and unknown) of Company A. Company B wants a NEWCO (LLC) formed where they will own 50% and the Company A ho… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Two individuals are starting a company as a LLC Partnership.
Two individuals are starting a company as a LLC Partnership. One 2/3 ownership and the other 1/3.They have equipment that is easy to value and add as an asset. The question is about merchandise on han… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
, I'm trying to post the sale of 49% interest in a single member LLC, thereby trans
Hi, I'm trying to post the sale of 49% interest in a single member LLC, thereby transforming the company to a mutli member LLC. The seller didn't contribute the money to the company; he kept the sale … read more
USTaxAdvising
USTaxAdvising
Partner
Bachelor's Degree
609 satisfied customers
, me and my brother incorporated an LLC company in Delaware
Hi, me and my brother incorporated an LLC company in Delaware in 2014 as wanted to start a software development and consulting business. We do not have office, we do our business online. My brother is… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My Dad gifted 3 low income rental properties to me and my brother.
My Dad gifted 3 low income rental properties to me and my brother. I am trying to decided how to handle the income taxes. The property management company is asking me to provide them with either a Fed… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Background: An individual is creating a marketplace website.
Background: An individual is creating a marketplace website. Initial investment (web development and other start-up costs) is approximately $50-60k, much of which to be spent in 2012, self-funded. Com… read more
Anne
Anne
Master Tax Preparer
1,328 satisfied customers
My brother and I purchased 5 properties several years ago.
My brother and I purchased 5 properties several years ago. Four were in my name, and one was in his name. We purchased the houses as investment, speculative houses that we wanted to flip, but would re… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
What percentage should I use to determine if two related companies
What percentage should I use to determine if two related companies (brother-sister) need to do a consolidated calculation for the research credit?… read more
Jax Tax
Jax Tax
Senior Tax Attorney
Master's Degree
1,363 satisfied customers
I invested 50,000.00 in my son-in-laws business and it failed
I invested 50,000.00 in my son-in-laws business and it failed a year later. I received no compensation. How do I show this on Taxes? It came from my retirement fund!… read more
Anne
Anne
Master Tax Preparer
1,328 satisfied customers
I have paid off investment R/E properties. Due to the market
I have paid off investment R/E properties. Due to the market they lost their value. I want to claim losses on my Tax Return by selling them. But at the same time I want to keep them. I have the S-Corp… read more
BK-CPA
BK-CPA
Bachelor's Degree
687 satisfied customers
I tried to change the way I filed my company tax returns from
I tried to change the way I filed my company tax returns from a partnership to s corp. for the years 07 and 08. The IRS allowed the 08 change but not the 07 change because it was at of the IRS procedu… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
Partnership dissolving due to accident & drouth conditions.
Partnership dissolving due to accident & drouth conditions. (twin brothers w/grass sprigging busn, 1 brother paraplegic after accident, family farm business exists) Abandoning equipment=showing 4797 l… read more
MequonCPA
MequonCPA
CPA Firm Owner
Master's Degree
2,165 satisfied customers
Federal tax question. My husband and I had a partnership with
Federal tax question. My husband and I had a partnership with another couple. They both quit the partnership on July 31, 2008. We changed the name and continued the business as a partnership. We were … read more
RD
RD
Self Employed
Master's Degree
1,164 satisfied customers
I am creating a new LLC (#1)to become the Parent Company of ...
I am creating a new LLC (#1)to become the Parent Company of an existing LLC (#2). I am transferring all assets of #2, including contracts, employees to #1 except for the holding of a subsidy. What are… read more
jgordosea
jgordosea
Enrolled Agent
Bachelor's Degree
2,885 satisfied customers
Myself, my brother, and parents purchased a house in 2007 ...
Myself, my brother, and parents purchased a house in 2007 that my parents are living in. The title was originally put in my parents name only, and then was supposed to have been changed to a tenancy i… read more
jgordosea
jgordosea
Enrolled Agent
Bachelor's Degree
2,885 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x