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Q.How can I convert my sole proprietorship into an LLC?

A.Converting a sole proprietorship into an LLC is technically not a conversion under California law because a sole proprietorship is not a seperate entity. The conversion process would only occur if the business was formerly operated as a partnership, limited partnership, or corporation.

Nevertheless, you can transfer all of your sole proprietor assets and debts to a newly formed "single member" LLC. This will require filing Articles of Organization, a Statement of Information, Notice to the Commissioner, the preparation of an Operating Agreement, etc.

After the LLC is formed but before you transfer the sole proprietorship's assets to the LLC, you should provide written notice to all of your known creditors and publish a Bulk Sales Notice in a local paper of general circulation.




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