Business Interests

Limited Liability Interest Sale or Transfer

LLC's are a more involved asset when held by an estate or trust, and succession of LLC interests should be done with caution and under the guidance of legal counsel - pitfalls are numerous.  Consider that taxes can be involved, including the need to analyze tax elections on the deceased person's interest.   An LLC can be taxed in multiple ways, such as:  partnership, S-Corporation, or even as a disregarded entity.  Whether single-member (single owner) or multi-member with multiple owners, LLCs are fraught with issues on succession and numerous issues can crop up.  For example: Transfer of all interest in an LLC can be complex, and incomplete transfer of LLC interests may not fully transfer governance rights or right to appoint the LLC Manager.   Also, under Utah's LLC statute there are several provisions that require a single-member LLC to wind down and cease operations only a few short weeks after the death of the sole member.  Further, negotiation of the post death acquisition of business interests can be complex and always requires careful documentation of assignment and tax liability.  To discuss this a host of additional considerations, Consult with an Attorney.

Corporation Interest Redemption

The transfer of corporation interests upon death of a stock holder can also require that you consider a number of federal income or transfer tax, estate tax, state tax, and state law issues.  A corporation may have an insurance or otherwise funded buy-sell obligation.  Or, a corporation may have need of a plan structure to efficiently purchase the stock of a major shareholder.  Any corporation will need to continue submitting required federal, state, and regulatory  filings, as well as maintaining corporate formalities with board and officer requirements.  With state tax and federal dividend rules underscoring many redemptions of corporate interests, consultation with an attorney is essential to optimize the outcome of an acquisition.

Sole Proprietorship Business Sale

Even the sale of a seemingly simple business - a sole proprietorship - can be fraught with potential errors.  Buyers and sellers often of incommensurable differences.