QUESTION
What steps are involved transferring my mom's business share to me and my sister?
Asked on Feb 13th, 2017 on Business Law - New York
More details to this question:
Hi, I am a US citizen residing in NYC. My mother (foreign citizen residing outside the US) is a partner (a total of 4 partners) holding a 25% share in an LLC that owns a motel property (franchise). If we were to equally transfer my mom's share to my sister (US citizen residing in California) and I (12.5% each), what would this entail? I was advised doing this as a gift would eliminate potential taxes. Do you have any other route that would be beneficial? Would there be any potential objections from the partner, franchise or loan bank? On a side note the motel refinanced its loan in September of last year. Not sure if this matters. I would prefer someone who had a NYC legal experience to answer this. Thanks.
1 ANSWER
1 Award
The actual transfer is just a matter of marking up the LLC books, and doing it in accordance with the Operating Agreeement. The tax issues are the main issues. There is no tax on the transfer itself, but when the members report their new shares, the tax to you and your sister will adjust accordingly.
Answered on Feb 18th, 2017 at 8:25 AM