Corporations, Partnerships, Limited Liability Companies
Many people are surprised to learn that a failure to transfer stock they hold in their corporation, a partnership interest or membership interest in an LLC, could trigger a probate if the value of their business assets exceeds $166,250.
The transfer of business interests to a trust is a simple matter if done before a person’s death. It may involve preparing corporate minutes and new stock certificates detailing the transfer of stock, amending a partnership agreement or operating agreement for an LLC.
Individuals may wish to create a corporation, partnership or limited liability company as part of their estate planning and/or business operations. Annual preparation of corporate minutes and required filings with the Secretary of State and Franchise Tax Board should be guided by an attorney and tax advisor to keep your entity running properly and maintain the liability protections you envisioned when you established your business.