Converting a General Partnership to a Limited Liability Company
You as well as your business partner are operating your company as an overall partnership for the previous several decades. You've been studying about limited liability companies (LLCs) and have determined that your company should truly be worked as an LLC. Can it be too late? Would you convert your company out of a general partnership to an LLC?
Why would a company want to convert into a limited liability company by a venture? The main reason that a company would like to convert in a general partnership to an LLC would be to enable the spouses to protect themselves from personal liability for obligations of the business enterprise. Every partner in a general partnership is accountable for each of the debts of the organization. If you think about starting your own LLC then you can take the help of the various websites.
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The limit generally only applies to obligations arising after the conversion. It's not likely that a general partner is going to be published from personal liability to the enterprise's creditors to the company's debts present before the conversion.
An associate will prevent personal liability for debts incurred by the LLC but may remain accountable for debts of the overall partnership that are transferred to and assumed by the LLC from the conversion. Initially, most state laws included no provision permitting one sort of business entity to modify to an LLC.
At that moment, in case you had a partnership, then you needed to dissolve the venture and disperse its possessions and obligations to each one of the partners. At the stage, the spouses would donate those assets and obligations to some newly-formed LLC and eventually become members at the new LLC.