Transferring Ownership Of A Single Member LLC
Would someone please share the proper procedure to transfer ownership of a single member LLC between two unrelated individuals.
What paperwork needs to be executed and is anything filed with any state agency?
I want to purchase a property that is help by an LLC. It is the only asset of the LLC.
Thanks for your help.
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[ Edited by jmiller531 on Date 06/22/2010 ]
The answer depends on your LLC articles of organization, operating agreement, and state law. From a google search, it looks like you should be familiar with http://codes.ohio.gov/orc/1705, specifically http://codes.ohio.gov/orc/1705.14 through http://codes.ohio.gov/orc/1705.18 inclusive.
If you become a member of an LLC, and the old member is removed, you get all the baggage of the LLC. Are there any judgments against the LLC? Pending lawsuits? Other liabilities? An alternative is: create your own LLC, then purchase the property and put it in your own LLC. If you are buying the LLC with financing of the property already intact, make sure you know who is responsible for the loan... the (former) member or the LLC. Many lenders require personal guarantees for loans so the member remains "on the hook" even after LLC membership ceases.
This post is for general information as I see it and is not legal advice since I am not an attorney. [ Edited by ITBInvestor on Date 06/23/2010 ]
You could be nice and give him 30 days to re-record the deeds properly (proper company name)... before selling your assets. I would seek legal advice before actually selling any of these properties. [ Edited by ITBInvestor on Date 07/15/2010 ]