Conveying ownership of assets held by a limited liability company (LLC) to a person in their individual capacity involves legal and tax considerations. For example, real estate, vehicles, or intellectual property could be deeded from the company to a member or a third party. This process requires careful documentation and adherence to state regulations governing LLCs and property transfers. The type of asset being conveyed influences the specific procedures and documentation needed.
Shifting ownership in this manner can serve various purposes. It can be a crucial step in dissolving an LLC, distributing assets among members, or facilitating estate planning. Historically, the ability to separate personal and business assets has been a significant driver in the development and popularity of LLCs. This separation offers personal liability protection, which is a core benefit of the LLC structure. Properly executed conveyance helps maintain this protection while enabling flexible asset management.
