madhurireddy2005[at]yahoo.com wrote:

- quote -

Well, HOW are you getting out of this LLC? Presumably you
will sell or otherwise dispose of your member interest in
the entity, either to the other members or to another party
who will thereupon become a member, and you will either be
compensated for that transfer ... or not. In any case, what
you will have is the sale or other disposition of your
interest in the LLC. You will have a taxable gain or loss
on that transaction, which is the difference between the
amount you receive and your tax basis in the LLC.

Under most state laws, interests in LLCs are freely
transferable. You will need to check the laws of the state
where the LLC is organized to find out if any restrictions
or reporting requirements apply to the transfer.

If the LLC does business only in the state where you reside,
that is the only state that will tax the gain or loss. If
it does business in other states, most states will treat the
gain or loss as arising from the sale of an intangible and
therefore sourced to your state of residence; therefore, not
taxable in the other state. However, some states may assert
jurisdiction to tax the gain, particularly if you were a
manager of the LLC as well as a member.

Katie in San Diego

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<madhurireddy2005[at]yahoo.com> wrote

- quote -

Well, you need to settle up with the partnership, either
they owe you, or you owe them. But generally there is some
"final" financial settlement.

Then, when the Partnership files it's year end return,
they'll issue you a K-1 with the "final" box marked.

Any other legal wranglings need to be discussed with an
attorney.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

madhurireddy2005[at]yahoo.com wrote:

- quote -

Depends on the laws in your state. In general you will just
sell your share either to the LLC or to the other members.

- quote -

If you're not the managing partner, I don't see why you
should.

Stu

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I am member of an LLC business. We are 5 Investors. I
wanted to know what process do I need to follow to come out
of an LLC? The business will continue as usual just that I
want my share out.

Do I need to file something with the state or IRS or with
all of them?

Appreciate your help.

-Madhu

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >