Skip to main content

How do I merge two sole proprieterships under one LLC?

Saint George, UT |

I own a e-commerce website as a sole proprietership, and so does my freind. We want to merge the two website's, and start a new website, all of which will be owned 50/50 under an LLC. I have an FEIN number for my sole propietership already, along with a state sales tax number & account. Can the sales tax number be used for all 3 e-commerce website's, or does it have to be set up under the name of the LLC in order to apply to all 3 website's? What's the easiest way to hold these 2 entities and start a new entity all under one LLC with each partner owning 50% of all 3 entities?

+ Read More

Attorney answers 1


1st form the LLC, and do an Operating Agreement that spells out who owns what, how ties are broken, how 1 of you buys out the other one, etc. etc.

2nd, assign or sell the rights to the existing businesses to the LLC. That's 2 documents, and may mean domain names, trademarks, trade secrets, good will, etc. A business lawyer can help document the transactions. A CPA can handle the tax aspects of this. If your lawyer also does IP, they can handle the acquisition of the trademark for the new company. Once you get this done, there will not be 3 companies, there will be just 1.

Avvo doesn't pay us for these responses, and I'm not your lawyer just because I answer this question or respond to any follow-up comments. If you want to hire me, please contact me. Otherwise, please don't expect a further response. We need an actual written agreement to form an attorney-client relationship. I'm only licensed in CA and you shouldn't rely on this answer, since each state has different laws, each situation is fact specific, and it's impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue.

Business topics

Recommended articles about Business

What others are asking

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer