footballfangb
03-10-2012, 03:38 AM
I am one of the two members of an LLC that provides consulting services for large business clients. We incorporated in Oct 2011 in Minnesota, which is where I reside and have registered ourselves as a foreign LLC in Wisconsin, which is where my other partner resides. In 2011 all we had was some startup expenses of $2K that were funded personally by credit cards and no revenue. I invested about $10K in capital in 2011, that is still in our bank account and my partner has yet to invest but is open to putting the money. In 2012, we have made decent income so far and have more revenue lined up.
We are friendly and have always discussed and came to fair agreements. As such, we have never created an operating agreement. Due to an unexpected really good job offer that came my way, I am considering leaving the LLC. I have discussed this with my business partner and he has no issues with this. We discussed options on what's the best way for me to exit and for him to keep operating. We are open to ideas but our goal is to make this easy as well as smooth for both of us.
My questions are,
1. What options do we have? What is the best option that is easy to execute, doesn't cost aton of money but let's my business partner operate the business without lot of change on his part?
2. How can I transfer/sell the business that is incorporated in Minnesota when the other business partner is in Wisconsin? What kind a documentation should we keep?
3. What should we do about my $10K investment? Can I write a check to myself or do we need to execute a sale agreement? Will this cause a tax liability for me?
4. Do I need to worry about any future liabilities?
5. Do we need to send any documentation to Minnesota , Wisconsin and IRS?
I am looking forward to getting some help on this topic from folks here. Thanks in advance.
Footballfan
We are friendly and have always discussed and came to fair agreements. As such, we have never created an operating agreement. Due to an unexpected really good job offer that came my way, I am considering leaving the LLC. I have discussed this with my business partner and he has no issues with this. We discussed options on what's the best way for me to exit and for him to keep operating. We are open to ideas but our goal is to make this easy as well as smooth for both of us.
My questions are,
1. What options do we have? What is the best option that is easy to execute, doesn't cost aton of money but let's my business partner operate the business without lot of change on his part?
2. How can I transfer/sell the business that is incorporated in Minnesota when the other business partner is in Wisconsin? What kind a documentation should we keep?
3. What should we do about my $10K investment? Can I write a check to myself or do we need to execute a sale agreement? Will this cause a tax liability for me?
4. Do I need to worry about any future liabilities?
5. Do we need to send any documentation to Minnesota , Wisconsin and IRS?
I am looking forward to getting some help on this topic from folks here. Thanks in advance.
Footballfan