how to change llc to llp [Best Info]

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Last updated : Aug 7, 2022
Written by : Ellsworth Frommer
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how to change llc to llp

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how to change llc to llp

Comment by Mavis Meixner

my attorney messed up my llc information can it be fixed short answer yes everything can be fixed disclaimer i'm not your attorney i'm not your cpa i am just providing generally accessible information you can get anywhere on the google machine um i'm just curating everything that i've learned through years and years of research into this uh one series here for entrepreneurs like you and me so uh again yes everything can be fixed let's say this llc was filed for hal by bob that doesn't look like a bob let's let's call him jeeves again um jeeves is this guy with the fancy mustache whether he's an architect or in this case he is a lawyer so this is an actual real question that we got uh some attorney messed up someone's llc and they needed it fixed um we mess up sometimes too what really matters is that if something goes wrong the person who filed it fixes it so if you pay an attorney a lot of money to file an llc for you and they flub it up and they don't fix it or they want to charge you an hourly rate maybe it's time to move on but you know again we've we've messed up before sometimes the customers have given us the wrong information we filed the information based on what they told us and it wasn't our fault it was their fault but in the end it doesn't really matter we need to make sure that the information's right so to fix this information all you need to do is file an amendment and you can either file an amendment with the state or the federal government so you might have the state here and the the federal government here this is for the irs and this is for the actual llc so the llc is state-based not um not federally based we have a video based on that that goes into more detail we have a playlist and all that that goes into all this information so highly recommend you watch those but like i said the llc is filed with the state the ein is filed with the irs and the legal documents are filed with nobody you keep them with yourself so this is actually the state filing so we're going to concentrate on this if you filed in texas and you need to change the name because the name's wrong uh that's a filing if you need to change the address because the address is wrong that's a different filing every state because we are the united states of america every state has their own rules and regulations of how all this works so every state government has their own ways of doing things in their own costs for making these changes so some states have you fax information in delaware still has you fax information in some states require that you fill it out on a piece of paper and snail mail it into them other states are more advanced than have you fill it out via an online form this is where better legal actually really shines is that we have a database of over 1500 different options so you know there's an llc in all 50 states there's a foreign llc in all 50 states there's a corporation all 50 states so there's already 200 options but then every state has a name change option an address change option a manager change option a registered agent change option but then you get to the legal documents and you might need to change you know we started off 50 50. um but now we want to change it to you know i've been putting in more sweat equity and and bob didn't and so i should own 70 and bob should own 30 so we need to make that change um ultimately you just if if it's with this the llc you make the change with the state government if it's with the ein you make a change with the federal government if it's with the legal document you just make a change and everybody signs it and you tack it on to the end of the legal document that you got when you filed your information and that's really it now there are fees associated with this so if you want to do a name change in texas versus wyoming it might be more expensive than one or the other it's also going to take longer in one or the other but the short answer is yes you can change your information nothing is set in stone the business is going to evolve if if you're one of the lucky people that gets to continue this business over years and years and years um there are going to be changes in where your office is there'll be changes in the name they're going to be changes and maybe you expand in new states um maybe it's you know you add a partner a manager a member but anyway that's the the short of it if you got value of this video please like and subscribe share it with a friend uh or go to and get an llc from us or share this information with your friends so your friend can get an llc or corporation from and i will see you on the next video

Thanks for your comment Mavis Meixner, have a nice day.
- Ellsworth Frommer, Staff Member

Comment by Terrance

today on everyday ordinary i'm going to share a clip with you from a phenomenal conversation that i did not expect with the tax preparer mr antoine anderson this is something that you do not want to miss please continue watching this section i've had a ton of people ask me questions on this and i'm just like look you gotta talk to accountant i just don't know my informat you know my knowledge is limited and this gentleman here he's i think he's gonna smash this one as well and this is this could be arguably some of the most important things especially for people who are young adults and older so what it's going to be is is what do you feel are the pros and cons to opening an llc and equally as important what type of businesses type of business models some examples if you can offer will be better suited for llc versus another example which we will get into after after this part yeah llcs are great for individuals that are just starting off for and they started off and they're just individually owned exactly what it is or two or more and you have a multiple person llc uh let's talk back let's step back for a second and talk about the origins really fast or where it came from used to be partnerships that were well the big scenario or big or types of businesses that were started or self sole proprietor organization well sole proprietor and partnerships have what you call jointly and severally liable or individually liable that means that if you are sued then that means that you have a personal liability attached to that and there's unlimited that's important so if you were out and you had a delivery business and you have your name on the side of your truck saying antoine's delivery business and i go out and i have the accident they're going to suit my business antoine delivery and if i'm not set up properly through a llc or through some other type of setup then they can come in and say that nice car that you keep on the side and that nice house and personal bank account we can look at taking those as well wow look at liability as as a means of determining the llc but also that what the llc stands for is a limited liability company in the case of an individual and what that is is how you start that business so when you set up that llc you want to set it up and open up that bank account and have everything established in writing that i'm opening up my business with a hundred dollars five hundred dollars or a thousand dollars or whatever the number is what that number represents is your basis and with that as being your basis if someone does sue your business they can suit your business and up to that amount that you put in as long as you don't do one big thing that every business owner must learn and that's called pierce the corporate veil please do not co-mingle your business with your personal wow transfer it over i want to go out to the club don't pull out your business card and start swiping buying drinks hanging out at the park taking the kids to disneyland buying clothes transfer the money to your personal account and then buy those things that's piercing the corporate veil and what the internal revenue service or any legal mind would do is say we can't make a distinction between the business or you being personal so that money that you put in to start all bets are off we can go after everything wow wow that's that's pretty deep man that's that's who they know did not know that so yes you want to definitely not pierce the corporate veil on or in any aspect of your business keep it separate it's not hard just in today's technology transfer the money over then you can do what you want but before you transfer the money over always make sure you leave enough money in there uh to cover any expenses that's outstanding and also maybe one month or two month at the minimum i always say three months in the bank account and then from there a lot of people start off with llc's because they work well and i like to leave people in the llc for a while if they don't have their spending habits together they need the money to keep pulling money out and keep pulling money out you don't want to do that as a corporation because that corporation sits over here that's another entity not even though you own it it still sits over there so that's when the piercing of the corporate bill really gets into it comes into play you want to look at your basis and make sure that you have positive basis and after the tax act that came out in 2018 the internal revenue service does calculate basis a lot more than what they used to and that's a lot of topic okay any um recommendations like what because i have a lot of people who want to start like clothing companies or they may want to do a when they buy sneakers and then resell them are those suited for something like that or sure llc start off is is always a baseline for you to start and then go and branch from there okay i'll start as an llc and then i may go to a corporation beyond c-corp or s-corporation what companies don't work well on the llc's is that you're wanting to start an investment group okay investment groups work better and and and i always refer to a legal mind i'm not an attorney but investment groups work better in some cases under llp a limited liability partnership because now you're giving people percentages of ownership and and return on investments that's interesting yeah llc is more of a limited liability company and they don't work as well on that in a limited liability partnership llp i believe this is the first time i've heard of that so this is once again more info more education i i'm digging it i love it i like to learn and i hope everybody likes to learn as well so i think that was great i i think he covered a lot with that and then that in that breath or two really appreciate it llc guys is definitely a good place to start if you're an individual and you're trying to start something from the ground the uh appears to you say corporate veil pierce the corporate veil that was pretty dope i was unaware of that i will i probably will never forget that i think that was something that hopefully if you're interested if you own one that you should consider putting in the front of your mind so i once again i appreciate it um if there is a question or comment that you want to contribute to this discussion feel free to leave it in the comments and we can talk about it some more

Thanks Terrance your participation is very much appreciated
- Ellsworth Frommer

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