Post a new topic
    5 Replies Latest reply on Nov 13, 2008 6:06 PM by SoCalLawGuy

    LLC question

    bwright32 Newbie
      I've recently formed an LLC, and I would like to know if it is possible to convert the LLC from a partnership to a single owner. Basically, I formed the LLC and listed my fiance as a partner, when in realityI've been running the business as a single owner. We both agree it was a mistake to list her as a partner (not really sure why I did in the first place) and she has no interest in being a partner at this point. Do I need to file paperwork to convert the LLC to a single owner? I live in Georgia, and I have done some research on the subject over the internet, but have not found any useful information. Any help would be greatly appreciated.
        • Re: LLC question
          LUCKIEST Guide
          32 LLC question. Welcome to this web site.
          When you say single owner, you are talking about a SOLE Proprietor (filing a Schedule C).
          If that is the case it is easier NOT to convert. Terminate the LLC and form a NEW Sole Prop.
          Do you have a Business Name?? If you have a Federal I D number, the govt issue you a new one.
          Hope this helps. I am a Quickbooks consultant with clients all over the States.
          LUCKIEST
          • Re: LLC question
            Lighthouse24 Ranger
            Unless I'm misunderstanding your question, the operating agreement you filed with the state when you formed the company should contain an article that spells out your procedure for transferring one member's interest to another or to outside parties. The "normal" procedure is that your fiance would make a written offer to sell her interest to you at a price determined by mutual agreement. When the sale was executed, your LLC would have one member-manager instead of two. Hope this helps.
            • Re: LLC question
              SoCalLawGuy Newbie

              Do I need to file paperwork to convert the LLC to a single owner?

               

              In Georgia it may be as easy as filing an amendment. you should contact a company that deals with LLC's like MyLLC.com or LegalZoom they may be able to tell you what filing need to take place in order to remove a member from an LLC.
              • Re: LLC question
                nMoncrief Adventurer
                Finally, a question I can answer that doesn't deal with credit cards! I was in the same boat, in the same state. I created a GA LLC in late 2006. I was listed as the Registered Agent, and my partner and I were both listed as Organizers. By early 2007, my partner was out of the picture. I was confused about what to do w/ the LLC, and so I froze and did nothing (other than run the business) until early 2008. By then, I was sure I'd need to dissolve the LLC and create a new one. I called the GA Secretary of State's office, and I was told my LLC would be fine, once I paid the fee for 2007 and 2008. Since my partner was only listed as an organizer, the fact that his name was on the paperwork didn't matter to the State. I paid the fee, and I'm in good standing again according to the State.

                Hopefully, your situation will be just as simple. I suggest you call the State and ask them to be sure. And if you ever need to accept credit cars, please call me.

                Neil Moncrief
                www.CreekFinancial.com
                • Re: LLC question
                  SoCalLawGuy Newbie
                  you will also need to update your operating agreement, if you dont have one I think you can still download a free one on http://www.myllc.com/llc-for-dummies.aspx

                  partners.. cant live with em' cant live without em'