mlavigneosu
New Member
My business deal consists of the following:
I am buying out my current partner's share in our S-Corporation (I will own 100%) and I have already opened a new California LLC.
The problem: I was told the State of CA does not allow transfer of assets from an S-Corporation to an LLC. So here is what was proposed by the lender.
The lender indicated that when they loan me the money, I must first transfer 100% of the assets of the S-Corporation to myself as an individual, then I must dissolve the S-Corporation. The final milestone is that the assets will be transfered from myself to the LLC.
My questions:
How do I document the transfer of assets from the S-Corporation to me as an individual (or do the S-Corp dissolution papers provide enough evidence)?
And How do I document the transfer of assets from myself as an individual to the LLC?
Thank you!
I am buying out my current partner's share in our S-Corporation (I will own 100%) and I have already opened a new California LLC.
The problem: I was told the State of CA does not allow transfer of assets from an S-Corporation to an LLC. So here is what was proposed by the lender.
The lender indicated that when they loan me the money, I must first transfer 100% of the assets of the S-Corporation to myself as an individual, then I must dissolve the S-Corporation. The final milestone is that the assets will be transfered from myself to the LLC.
My questions:
How do I document the transfer of assets from the S-Corporation to me as an individual (or do the S-Corp dissolution papers provide enough evidence)?
And How do I document the transfer of assets from myself as an individual to the LLC?
Thank you!
