this is not exactly 100% real-estate specific question, but I'm sure we have the right expertise in the family to answer it. I'm sure I'm be encountering the same situation down the road, might as well prepare ahead of time.
A good friend of mine registered and funded a LLC last year planning on starting a business. The business didn't work out due to the current market condition (oil price drop...). He is planning on transferring the fund from his LLC account to his personal A/C.
Is there a standard protocol to transfer fund from LLC a/c to personal a/c? Any tax implications?
From a legal perspective (not tax):
Trust me, I get tired saying this part; you may want to talk to a local attorney regarding what the appropriate "winding down" procedure is for the particular style of corporation that this is in that particular state.
That said, Failure to adhere to local rules for dissolving an LLC may make any potential creditors very angry. As I do not have all the facts in terms of the types of claims that could potentially arise against the LLC, I would recommend your good friend sit down with a licensed, local attorney to discuss what types of potential creditors there may be and what the local rules are for removing assets from the LLC in anticipation of closing it.
Don't want to become personally liable.
thanks for the advise @Matthew Kreitzer
Is this a single member LLC which was pass-through for tax reasons?
If so, I believe he can write a check to his personal account and mark it as Owner Draw.