Separate names with a comma.
Discussion in 'Growing and Managing a Business' started by mguest5380, May 30, 2011.
I have an existing business but would like to put it under another LLC. How do i do that?
Welcome to our Business Forum mguest5380. Is your business based in the US? What type of business is it at the moment, e.g. is it a DBA?
yes, my business is based in the US
A company that controls other companies by owning an influential amount of voting stock. In the UK it is generally held that an organisation holding a controlling stake in a company is in effect the real parent company of the firm, having overriding material influence over the held company's operations.
Moving an existing biz (let's call it "EB") into an LLC generally is accomplished using one of these approaches:
EB transfers some or all of its balance sheet (assets and liabilities) to LLC in exchange for equity in LLC. EX may either continue in existence as a holding company, or liquidate by transferring the LLC equity out to EB's owners.
EB liquidates by transferring its assets out to its owners, who immediately recontribute those assets to LLC in exchange for equity.
EB and LLC combine under a legal merger, which leaves LLC owning EB's business, and EB's owners holding LLC equity.
Very important: Which method is adopted depends heavily on how EB is currently structured, along with several other details specific to the circumstances. In addition to the legal issues involved with shifting ownership of assets, and with shifting responsibility for debts, the tax ramifications of these methods are usually significantly different. An attorney's guidance is usually a good idea, along with that of a tax advisor.
Very good answer ArcSine. mguest5028, you could always hire a business consultant if you need any help with this.
yupp.. as yanni said, one can also approach a business consultant for best possible help and advise.