How to change ownership of an LLC in Virginia?

Transfer of Virginia LLC ownership involves legal, administrative, and internal documentation processes. Irrespective of partial or complete sale of the LLC, it is mandatory to perform as per Virginia state laws for compliance and safeguarding the interests of all parties involved.

Most crucial steps to transfer LLC ownership in Virginia:

• Check the Operating Agreement: This document should explain how ownership can be transferred. It may include rules for getting approval from other members.
• Prepare a Transfer Agreement: Write a legal agreement that shows how much ownership is being transferred and to whom. Both parties should sign it.
• Get Member Approval: If the LLC has more than one member, the other owners may need to agree to the change, as outlined in the operating agreement.
• Update the Operating Agreement: Modify the agreement to reflect the new owner percentages and member status.
• Notify the IRS (if needed): If the change affects the managing member or tax setup, file Form 8822-B to update the IRS.
• Update Licenses and Bank Accounts: Change the names on all business licenses, permits, and financial accounts to match the new ownership.
• State Filing (if applicable): Virginia does not require filing ownership changes with the exception of a registered agent change or other public record information, but it is advisable to keep records up to date.

Thanks to One IBC USA Team, LLC, owners in Virginia are able to transfer ownership without hassle and in accordance with all legal requirements, thereby ensuring continuity of business.