llc partnership vs. llc sole proprietership? (proprietorship, lawyer, organization, register) - incorporation, advertising, financing, small business... - City-Data Forum

hishawnlee · 09-16-2009, 11:59 AM

Is there such a thing as llc partnership and an llc sole proprietorship or is llc completely different from partnership and sole proprietorship?

my boss told me we are currently llc partnership and wants to switch to llc sole proprietorship but we dont know how to? any ideas?

please help

StoneOne · 09-16-2009, 12:22 PM

No, as a legal entity, there is no difference. When you file your articles of organization with the state office, you simply specify number of owners and whether they're role will be managerial or not. If you're going to have more than one owner, it's best to have an operating agreement for legal reasons. Any business lawyer can do one very quickly for you.

A partnership is a different type of commercial entity, one which I would advise you to avoid, as it exposes partners to personal liability in the same way that a sole proprietorship (dba) does.

LLC's are a great way to organize for most small companies.

hishawnlee · 09-16-2009, 01:42 PM

ahh thank you. so i just talked to my boss and he said that there were two owners, him and another friend who was listed as managerial. Is it possible to take that position off of the friend because she will be no longer affiliated with us? If so how would we go about this process? Thanks for the answer stoneone! :]

StoneOne · 09-16-2009, 02:01 PM

Quote:

Originally Posted by hishawnlee

ahh thank you. so i just talked to my boss and he said that there were two owners, him and another friend who was listed as managerial. Is it possible to take that position off of the friend because she will be no longer affiliated with us? If so how would we go about this process? Thanks for the answer stoneone! :]

I think all you need to do is file an amended articles of organization in the state where the LLC is registered. Presumably you will need the signature of the person stating he is no longer a manager. If there was an operating agreement in place, you'll probably need a new one drawn up, although that's not really crucial if there's only one owner/manager left.