Closing An Llc - Inventory Sales?

[Rogan]

Any of you guys closed a business (LLC - sole proprietor)?

 

can the inventory be sold to self, or spouse, at a discounted rate?  I'm trying to liquidate the inventory as soon as possible.

 

From what I've read:

 

"Though the law does not require non-bankrupt business owners to sell their business's assets when the business closes, many business owners try to sell them anyway to recover as much money from the business as possible. If a non-bankrupt business owner is a sole proprietor, he and the business are the same legal entity, so he can keep whatever inventory or assets he doesn't wish to sell. However, sole proprietors are still responsible for repaying the business's creditors."

 

I don't have any creditors.

 

Edited January 15, 2014 by Rogan

[joecool911]

Question for an accountant. But my best guess is LLC maybe , sole prop no.

[rancherman]

I agree  with getting  advice from   accountant,  but  I'd seem to me  you should be able to do whatever you want with any assets...   since  there is no  bank lien.

 

Now,  on the other hand,   IF  business shows a  loss  for the  year,    and   it reduces  or eliminates  tax on the business, (red flag to  IRS)   you might have  to do the  2 step  shuffle  to prove   the  reduced  sale  wasn't  'forced'.....  you as  an individual  would then    have to pay  some sort of  'gift tax' ....    lets  say  you had 10k  worth of  goods,  (that  you've already deducted/depreciated  when  purchased)    and  you  'sell' it  for  1k..    You as an  individual  probably would have to pay  a  'gift tax'  on  the    9000  difference..   unless you resell  the goods  again in your name... then you'd only pay the  difference    in  what you'd  sell it for  (the second time)

 

uggg... you better  go see the tax man!

Edited January 15, 2014 by rancherman