Transfering Business Ownership To a Family Member?

[elitebiz]

I have become severely ill and have to transfer to my business ownership to a family member so it does not have to be dissolved. Can someone please assist me in how to do this transfer?

[Business Attorney]

You should really talk to an attorney in your area.

Dissolution normally isn't caused by the illness or even death of the owner (except in the case of a proprietorship or sometimes a partnership). If you want to transfer ownership for other reasons, how you make the transfer depends on the type of entity (corporation, LLC, partnership, proprietorship) and how title to the interest is currently held. There are also income tax and gift/estate tax consequences to consider.

None of those can be adequately addressed without giving someone ALL of the relevant facts.

[KristineS]

Sorry to hear you are ill. I would definitely second what Business Attorney said. This sort of thing needs to be addressed by a professional in your area.

[vangogh]

I'm also sorry to hear about your illness. I'll also echo the thought to consult an attorney. I did a couple of quick searches and that's what most of the results were recommending.

[Evan]

An attorney would be able to help you best in this area, especially if the business is a sole proprietorship or a stake in an LLC or partnership.

Keep in mind that there is probably a tax consequence to this decision. Your attorney may or may not be able to assist you there -- in which case an accountant would be a great help. Though, depending on the severity of the circumstances, tax consequences may not be as important as the long-term legal implications.