Transfer of ownership

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  • #39048 Reply
    Musicmatters
    Participant

    Hey everyone, I need some help. I have recently, upon the advice of my accountant, formed an LLC. Has anyone here been through the process of transferring ownership of their assets, music, in this case, from their personal name to the company name ? Any help would be greatly appreciated. Thanks in advance !!!

    #39050 Reply
    Mark_Petrie
    Participant

    You shouldn’t need to transfer ownership- just fill out the form your PRO gives you to start receiving the payments as your company.
    You’ll want to do that with any other company that pays you too.

    #39051 Reply
    jhewitt79
    Participant

    I’m curious about this process. I had an attorney recommend that I do this as well.

    #39052 Reply
    Art Munson
    Keymaster

    What Mark_Petrie said. All I did was open up an LLC through LegalZoom https://www.legalzoom.com/. Once set up you get an EIN from the IRS, set up a bank account for your LLC, notify other companies you want to be paid to your LLC and give them your EIN number in place of your TIN number.

    #39056 Reply
    jdt9517
    Participant

    There are a lot of benefits of doing your business dealings inside an entity such as an LLC – including limitation of personal liability. There can be tax benefits also. If your professionals are recommending it in your case, it’s probably because you’ll get benefits from it. It is not unusual. In fact, pretty common.

    #39057 Reply
    Art Munson
    Keymaster

    including limitation of personal liability.

    I would not rely on that. From my understanding it’s fairly easy to pierce that shield.

    I am not a lawyer nor do I play one on TV!

    #39058 Reply
    Musicmatters
    Participant

    Thanks everyone, I will get in touch with my PRO

    #39059 Reply
    MichaelL
    Participant

    There are a lot of benefits of doing your business dealings inside an entity such as an LLC – including limitation of personal liability.

    Don’t be fooled into thinking that operating as an LLC makes you invincible. You can still be personally liable for your misconduct, for example infringing on someone’s copyright. LLCs are state entities and the rules vary from state to state. They may shield your personal assets if the LLC goes bankrupt, but you should consult with an attorney in your state regarding what personal protection an LLC does and does not offer.

    #39090 Reply
    jdt9517
    Participant

    @Michael – I do agree with you that an LLC does not make you invincible. Your example of copyright infringement is a very good one. However, the primary reason of individuals to conduct business within an entity is to limit liability to the assets of the corporation. Yes, there are things one should do to make sure the creditor cannot “pierce the corporate veil”, such as having liability insurance, and one should conduct business within the “business judgment rule”. Regardless, limitation of liability is usually the primary purpose of incorporating.
    Of course, incorporating can have tax benefits too. It is often better to conduct business within an entity to get those tax benefits.
    Big disclaimer – this is not legal or tax advice. Definitely contact your own counsel and accountants to see if incorporating is right for you.

    #39092 Reply
    MichaelL
    Participant

    Yes, there are things one should do to make sure the creditor cannot “pierce the corporate veil”,

    LLCs are a fuzzy entity. If you don’t set them up properly and run them properly it is possible to expose personal assets (speaking from the perspective of having successfully pierced the corporate veil more than once). So, yes, one should check with counsel and talk to their accountant to go about it the right way.

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