LLC Units Buyback prior to dissolution - company form & filing needs and how members file

Forum|Forum|7 years ago
August 21, 2018
1 reply
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We are closing our company, which is a Multiple Member LLC. Prior to closing we wish to buy back units from unitholders.

Do I need to generate, issue, and government file 1099-Bs somehow for the buyback, and if so how do I do this?

Or is this something that is taken care of entirely within the regular K-1s?

Carl11_2

Employee

Define "units" please. A multimember LLC doesn't have shares in the same sense as a C-Corp or S-Corp. So that can't be it.

Carl11_2

Employee

Are you referring to those that made capital contributions to the business, in the form of cash or materials maybe?

Carl11_2

Employee

I was reading your original post to fast, and thinking to fast before. I think I can get a grasp on this now. I'm assuming that in the past a 1065 was filed to report business earnings and owner distributions to the IRS. In the dissolution of this business, was it sold? Is it legally bankrupt? Or is the business just closing down for whatever reason? (state the reason if you can without getting to personal.)