Buying an established LLC

[Henry Kicera]

Hello everybody,

I've found several (3) properties which interest me. They all are owned by the same LLC. The person who I've been negotiating with is the principal of the LLC.

She suggested that one avenue to go about purchasing all three together, would be to purchase an equity stake in the LLC and eventually buy her out.

Has anyone purchased property or an LLC this way? The LLC owns all 3 properties.

I'd love to hear your experiences and feedback.

[David Krulac]

@Henry Kicera

I would not buy an existing LLC. There could be debts or even insurance liabilities that you would be buying. In many states you have 2 years to file a lawsuit, and here in PA. you also have 6 months to file a mechanics lien.

As a buyer of an LLC you would be liable for tax liens, back IRS liens, judgments, mechanics liens and everything else all of which is bad.

It doesn't cost much to start a new LLC, forget the old one and its possible down sides.