from sole proprietorship. to single member LLC question?

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from sole proprietorship. to single member LLC question?

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Monalisa

posts: 13

Dec 30, 2008 2:56 AM ET Quote Report Abuse

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Hi,

I am a designer, and I have been a sole proprietorship, single member since 2006. However next year I want to do some art licensing and I want to convert to a a single member LLC because of the liability etc.. I believe I will need to close my sole prop. close my EIN account, etc. Then file the new LLC in january. Correct?

My accountant told me I would have to pay a lawyer about 1500 to open the LLC however, I`m going to do it myself or maybe through Legalzoom.

My question is...has anyone closed their sole prop and opened an LLC?

And those assets that I had under the sole prop. such as computer, software....is that easy to to transfer these assets to the LLC?

Any information would be great!

Pennsylvania

patentandtrademark

posts: 1332

Dec 30, 2008 10:58 AM ET Quote Report Abuse

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do it yourself or hire a lawyer. avoid legalzoom.

-------------------------

James Lindon, Ph.D. Patent Attorney
Lindon & Lindon, LLC
Cleveland, Ohio
Patents, Trademarks, Copyrights, Pharmacy Law, Litigation
[this is not legal advice - provided for discussion only]
Intellectual Property for the Individual and Small Business: Identify, Protect, Enforce, Defend.
"Fools rush in where angels fear to tread."
http://www.LindonLaw.com

glgcpa

posts: 86

Dec 30, 2008 6:12 PM ET Quote Report Abuse

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Your accountant can and should help you with the numbers portion. Once that is done, you can either complete the LLC paperwork yourself or hire a lawyer. One of my clients hired a lawyer last year for that and he paid $150 for the paperwork only. There is a fee that your state requires that goes to your state that is in addition to the fee you pay your lawyer.

-------------------------

Gina L. Gwozdz, CPA
http://GLGcpa.com
http://TaxTreasures.com

Monalisa

posts: 13

Dec 30, 2008 7:47 PM ET Quote Report Abuse

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Thank you for your help! I will see if I can find a lawyer !

Monica

PRINCIPE

posts: 19

Jan 06, 2009 5:02 PM ET Quote Report Abuse

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Hi Monica, check your web state to see what the paperwork you need it. Then you can ask them about the transition of your business. If you will be the only member of the LLC

I think this is something that you can do for yourself. it is no necessary to pay thousand dollars for get the paper done.

feel free to write me if you need more information.

Manny

MattThomas

posts: 203

Feb 04, 2009 4:44 PM ET Quote Report Abuse

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I believe the formation of an LLC question has been answered. However, regarding your second question about transferring your assets from a sole prop to an LLC: there is nothing you formally have to do. A sole proprietorship is considered an extension of yourself, so transferring the assets from the sole prop to your LLC (both of which you are the sole owner of) is just a matter of you deciding you want to do it. From there just notify your accountant of the change and he/she will ensure it is noted on your balance sheet.

-------------------------

Motivation for Entrepreneurs
Entre-Propel.com

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