Remove Partner, Add Wife to LLC

[Brian Moran]

I have an LLC that my partner and I used to purchase, flip, and sell a home in 2019. That is the only thing we done with the LLC.

He is willing to leave, and I then want to add my wife.

There is no capitol or equity in the LLC, just a name and EIN.

The state of Ohio says all I need to do is update the Operating Agreement.  On-hold with the IRS as I type.

Why not have her “buy” him out for $1. Then he is removed and she is inserted?

Next question - doesn't the LLC then become a "disregarded" entity?

We have purchased a 4-plex, and want the LLC to move rents into a account in the LLC, etc.

thanks for any advice.

[Brian Moran]

Thanks for the replies - I ultimately decided to close the LLC. This was very easy. I had to fill out an online form with the Ohio Secretary of State's Office. Upon submitting the form, the LLC was closed within 24 hours (even over a weekend.) I then had to fill out some forms and snail-mail to the IRS. This too was very simple since the LLC had zero activity in the last 2-3 years.

Once the LLC was closed with Ohio (they email you that its done), I was able to apply for a new LLC (same name) and also apply for a new EIN with the IRS, which was granted, even though I assume the snail-mailed forms are still enroute.

I made the "new" LLC a sole-proprietorship with me as the only member. This will help with taxes, and my wife will still be able to be involved.

Brian