Skip to content

Succession Planning

How to account for selling your service LLC

One of the ways you may ultimately exit your LLC is through an “Outside buyout.”  I use the term “outside,” from an accounting technician’s perspective. The legal form of the transaction, is that you sell your ownership in the LLC to another person.  That person could be one of the existing owners or not.  I…

Read More

Exiting your non-service LLC

Exiting your LLC business could mean selling your interest to someone else.  It could also mean having the LLC pay you liquidating payments for the value of your ownership.  The later is the subject of this article assuming the LLC is being taxed as a Partnership.  I’ve written previously about exiting a service business,Leaving your…

Read More

When you exit a service business LLC

As the owner of service business you face a couple of classic options when you are ready to leave the business.  Sell your ownership to someone else, an “outside buyout,” or negotiate for a liquidating distribution where the LLC essentially buys you out.  This is known in the corporate world as a redemption.  In this…

Read More