changing llc members.....a tax event?

[Jeff D.]

Hi!  

Is transferring 100% interest from one single member to another single member a taxable event somehow?    

Does there have to be a "purchase" of that membership interest by the new member for some dollar amount from the old member for it to be a legitimate transfer?    

[Eamonn McElroy]

@Jeff D.

"Is transferring 100% interest from one single member to another single member a taxable event somehow?"

It depends on how the transfer is structured...  A sale of interest is a taxable event for the transferor.

"Does there have to be a "purchase" of that membership interest by the new member for some dollar amount from the old member for it to be a legitimate transfer?" 

Nope. There can be a gift but then you have gift tax exposure depending on FMV of the interest. Best to consult a CPA/EA.