How to transfer my one-member LLC to a relative?


1

I'd like to transfer my one-member LLC to a close relative, and then transfer it back when I don't have visa status problem.

After formation of my LLC in DE last year, there is nearly no operation due to my physical problem. Now I found I would have trouble to continue to be the owner upon the prospective change of my status of visa.

Instead of termination, I want to keep the LLC alive because the company name is somewhat important. I called the department of DE, in which I registered the LLC. They told me I did not list owner, so the transfer is not something they are in charge of.

Currently the LLC has no agreement of organization/operation, nearly no asset and no debt. I could probably do this with an internal operating agreement between we two. But is there any disadvantage, compared to a formal amendment file with the state?

Legal

asked Oct 16 '12 at 01:15
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Crosssea
6 points

1 Answer


1

It appears that you may be confused and causing yourself unnecessary grief.

First, whatever your visa status (or lack thereof), owning - i.e., being a member of - the LLC is not a problem. What causes problems is working for it. Please see Visa Basics for Foreign Entrepreneurs, Part 2: What Constitutes Work? Second, if you want to transfer ownership of the LLC, there is no need to file any document with the state. Furthermore, although there are good reasons to have a written operating agreement, if you create one it should address much more than merely transfer of the sole membership. The transfer would be accomplished, in any event, by an assignment agreement between you and your relative rather than by the operating agreement.

This is not a do-it-yourself project - indeed, as suggested above, this project may not be necessary at all. If you want to proceed in that direction, you should retain a lawyer to help you.

Disclaimer: This information does not constitute legal advice and does not establish an attorney-client relationship.

answered Oct 16 '12 at 03:51
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Dana Shultz
6,015 points

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