Dissolve company and re-create another or transfer to Wife?

Dissolve company and re-create another or transfer to Wife?

Flipper/Rehabber · East Brunswick, NJ · Member since 2018 · 64 posts · 152 votes
I created a company a few months back but I haven’t made any deposits in it (doesn’t even have a bank account). I realize now I want it in my wife’s name. Is it cheaper to dissolve the company and re-create another one in her name or transfer (gift) ownership? The caveat to the first option is I want to keep the same company name as it is our daughters initials. And to the latter, I don’t want to pay to file transfer paperwork for a company that has zero assets. Any thoughts?
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  • Rental Property Investor · Woodstock, GA · Member since 2017 · 22 posts · 2 votes
    7y

    Gary , I am not sure about NJ but I know I ran into a similar situation. I was able to contact the secretary of state and pay a filing fee ($30 in FL ) to change or add an officer to the LLC, and or Corp.

  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    7y
    Originally posted by @Gary Barella:
    I created a company a few months back but I haven’t made any deposits in it (doesn’t even have a bank account). I realize now I want it in my wife’s name. Is it cheaper to dissolve the company and re-create another one in her name or transfer (gift) ownership? The caveat to the first option is I want to keep the same company name as it is our daughters initials. And to the latter, I don’t want to pay to file transfer paperwork for a company that has zero assets. Any thoughts?

     There would not be any gift tax implications as the ownership interest (new partnership interests or stock if a Corp)  has no value and your can do unlimited gifts to spouse. 

    Question is why do you want to add spouse, it might increase your tax filing burden, if not don’t correctly. 

    Makesure you understand the implications of adding wife the the company. 

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