I (the wife) have a llc and want to transfer it to my Husband. What do I need to do?
Milwaukee, WI |
I have gone back to work full time and my husband it now going to run the business. the LLC is in my name but want to transfer that to my husband so he will be able to take a payroll from the business.
He can certainly receive a paycheck from the business as an Employee without having to first become an owner. However, it is easy enough to transfer ownership from you to him. Simply follow the specific instructions set forth in your LLC Operating Agreement - which sets forth the protocol for transferring LLC Membership.
These transfers between spouses in Wisconsin are typically tax-free exchanges, however, it would be wise to consult with a tax attorney or CPA to review all of the facts of your situation. Look at your operating agreement and determine whether the ownership interest is transferred and whether there are any limitations on any such transfer. Review your operating agreement to determine the management structure of the business as well. If it is a manager managed LLC, then I don't see why you couldn't just hire your husband to run the business and pay him a salary. I think it would do you good to meet briefly with an attorney and/ or CPA to ensure that you aren't creating any unnecessary issues.
The information contained herein is for general informational purposes only and does not constitute legal advice. No attorney-client relationship has been formed by my answering of this question.None of the information contained herein is intended to be, nor does it constitute, legal advice. You should consult with a competent attorney for further assistance.
You should consult an accountant for the best tax advice. For an LLC, the compensation of owners depends on how the LLC was organized (i.e. to be taxed as a disregarded entity, partnership or corporation). You may be better off hiring your husband as an employee rather than having all compensation being deemed an owner's draw.
This is not intended as legal advice. It is only provided for educational purposes and cannot be relied upon as legal advice. Further, no attorney client relationship is or has been formed by answering this question.