giving shares
by Wendy
(Columbus Ohio)
My husband has formed an LLC in which he is 'sole owner'. He wants to give me '49' shares of the 100 shares. We live in Ohio. Can we do this ourselves or do we need an attorney? Is there papers we need to provide to someone or is just simply type up a doc saying he is granting me 49 shares?
Answer
When it comes to money or the law, you should put everything in writing, even if the transactions are "between friends" or even spouses.
Excuse me for shouting, but I see people who are otherwise very sophisticated (like doctors), entering into transactions for hundreds of thousands of dollars with nothing more than a verbal agreement.
Then they complain when there is a dispute, and it costs a fortune in legal fees to untangle the "he said, she said" without the help of a written document.
Please don't be one of those :)
These transactions don't just affect you, they also affect creditors and governmental authorities--so even if you "trust" your friends, relatives, spouse, it needs to be in writing.
A simple written document (prepared by yourself) transferring shares would likely suffice.
If you'd prefer something more official, and which is likely to be more comprehensive, you can order Amendment service from Legalzoom.
As of November 2008, in Ohio, for $179.00 (which includes your state fees), Legalzoom will prepare documentation reflecting the addition of a new member to the LLC, any notices required by the state of Ohio, and any other documents needed to effect your transfer.
Because Legalzoom processes literally tens of thousands of corporate/LLC transactions each year, they have the economy of scale to efficiently process your paperwork, keep up with changes in the law, and do it all for much less than a general practice lawyer who may only do a couple incorporations per year.
