Remove myself off a 2 member LLc

· · 0 views
My friend and I started a small retail store about two years ago. The business wasn't making much money so I left and started working somewhere else last year. I filed for my 2014 taxes this year with the business included. My partner and I both want my name off the business since I'm not working there anymore and am not contributing to the business. What form should we file to get my name off the LLC? Someone told me to surrender my shares to him? Any thoughts? I haven't collected any money for this business since May 2014.

6 Attorney Answers

Best Answer
At a minimum, you do need to sign paperwork that indicates that you are returning to the entity any interest you may have in it as well as resigning from any positions. since LLcs are taxed at the individual's level, you will need to inform the IRS and NY that you are no longer an owner of the LLC. Also, check to see whether your acted as a guarantor on behalf of the LLC. If so, those creditors are not likely to let you off the hook. So best to speak with an attorney to help you do the proper paperwork, see that it is filed where necessary and help you negotiate terms of the separation.
Best Answer
The easiest method would be for the other member to buy you out. If you have a shareholder agreement, there could be a procedure for doing that already in place. Otherwise, if the other member will not buy you out, you may need to dissolve the LLC, since there are only two of you. It would be best to consult with an attorney who can go over your options and help negotiate the best resolution for you. You can contact any of the attorneys who answer your question directly or use the "Find a Lawyer" tab above.
Best Answer
There are multiple ways to achieve this goal, one of which is to ask him to buy you out. Different methods have different potential tax consequences. A local business lawyer and CPA can advise.
Best Answer
You will need to transfer your shares to your partner, and also need to make sure you are indemnified against any debts or obligations of the company after the transfer.
Best Answer
This is not a big deal. The answer depends on how you have filed the LLC. The LLC is more complicated that a simple corporation. You may need a secretary of state filing, or you may not. For example, if you filed the operating agreement, you will need to file an amendment. If not, then not. The tax authorities will be informed in the next regular return.

Sign in to answer this question.

Sign In or Sign Up as an Attorney