Am I able to take over an LLC?

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Am I able to take over an LLC?

My company’s sole owner wants to gift/bonus me all shares to the LLC making me sole owner. Is

this possible? Can I completely take over of the company without money changing hands?

Asked on April 28, 2019 under Business Law, Pennsylvania

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Yes, it is legal, the same way that someone could gift you with a TV, a car, or a house. All he and you need to do is execute a written agreement that he is giving his entire interest in the LLC to you in exchange for "good and valuable consideration, the sufficiency of which is hereby acknolwedged." You would then update the information with the state(s) wherein it is registered.
But before doing this, is there a reason he is being so generous? Is the company in debt? Is it being sued? Is it worth anything? Make sure you understand the company's legal and financial status before taking it over. 
Also speak to an accountant--there may be some tax implications for you. And let an attorney draw up the paperwork--if it's not worth hiring a lawyer to do this right, it's not even worth doing.


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