How do I acquire an existing LLC under my new C-Corp?

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How do I acquire an existing LLC under my new C-Corp?

I am creating a parent C-Corp to acquire my current LLC so I can have multiple
subsidiaries under the parent company. What are the legal steps I must take to do
this?

Asked on November 15, 2017 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Step 1: create the C-corporation.
Step 2: the member(s) of the LLCs either sell or give their interest(s) in the LLCs to the C-corporation, doing so by a contract (signed by an officer of the C-corp) where the members get something in return for doing so--either payment, or at least the C-corp. taking over any potential liability of the members from or for the LLCs and agreeing to "indemnify" the members for any debts, obligations, or liability. And yes: if it's the same person one both sides (e.g. you), you can sign in your dual capacities as corporate officer and managing LLC member.
It's really quite straightforward.


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