This question (how do I take my name off of a business?) is one that may arise in the course of your business career should you desire to end your association with a business entity. 3 min read
Updated July 8, 2020:
Removing Your Name Overview
This question (how do I take my name off of a business?) is one that may arise in the course of your business career should you desire to end your association with a business entity. Depending on what type of business you are a part of, your options for achieving this will vary, but they could include changing the business name or dissolving the business altogether.
Removing Your Name from a Limited Liability Company
If you wish to have your name removed from a limited liability company (LLC), usually because you wish to withdraw from the LLC, how you will be able to do this will depend on the operating agreement of the LLC. For instance, some LLCs will allow members to withdraw only if all the other members agree to it, while others will allow members to leave for any reason. If your LLC’s operating agreement does not cover this, or if there is no operating agreement, then the state’s default LLC rules will decide. Most states will cover member withdrawal in their default rules; in some states, withdrawal may require a filing with the state.
Removing Your Name from a Partnership
If you want to remove your name from a partnership, there are three options you may pursue:
- Dissolve your business. If there is no language in your operating agreement stating otherwise, this will be your only name-removal option. You and your partners will have to dissolve the business and re-register it without your name attached to it, which may be a hassle that all parties concerned wish to avoid.
- Change your business’s name. If the operating agreement allows for a partnership to continue after one of the partners leaves, even as a sole proprietorship, then you may change your business name to reflect this. However, you will still have to notify federal, state, and local authorities of this change. Choosing a new name may be as simple as removing the partner’s name from the business name, but you will still have to make sure the name is not already taken by another business in the state.
- Use a doing business as (DBA) name. If no alternative name is available or you simply do not wish to change your business name, you can also run your business under a DBA name. To do so, you must file for this name change with the county clerk so as to be able to use the name legally in your county. The filing fee for this can range between $10 and $100.
Removing Your Name from a DBA Partnership
If you are in a DBA partnership and wish to remove your business name, you can simply follow the procedures for this as laid out in your partnership operating agreement. If your agreement does not cover this, however, then you will have to look to what your state’s requirements are for revoking a DBA status. In some states, there are no requirements for dissolution, while in other states there are. Depending on your state, steps you may have to take to separate your name from a DBA partnership may include:
- Notifying the IRS to have the EIN account associated with the DBA closed.
- Having the DBA name unregistered with the state (these are typically registered with the county clerk; sometimes with the Secretary of State).
- Removing your name from any business bank accounts and removing your business partner’s access to any of your bank accounts.
- Inform all vendors and other business partners in writing that you are no longer in business with your partner, that your partner is not authorized to transact business in your name, and that you will no longer be liable for such business.
This last item is especially important because if a partner wants to withdraw from a partnership, there is the possibility that the other partner will take this poorly and “go rogue,” buying things in the partner’s name, which, if no written notice of partnership withdrawal was made, the other partner will be legally liable for. Many lawsuits and much grief has occurred as a result of neglecting this simple act.
If you need help with the question “how do I take my name off a business?”, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.
FAQs
Dissolve your business. If there is no language in your operating agreement stating otherwise, this will be your only name-removal option. You and your partners will have to dissolve the business and re-register it without your name attached to it, which may be a hassle that all parties concerned wish to avoid.
How do I disassociate myself from an LLC? ›
This typically involves providing written notice to the LLC and other members, specifying the effective date of dissociation and any additional information required by the operating agreement.
How do I separate myself from an LLC? ›
Provide written notification to the LLC of your intent to remove yourself. Receive what interest in the company you are due. (The other members are required to buy you out in line with the Articles of Organization and your share of ownership in the business.)
Can I remove myself from LLC? ›
Removing a member from a Limited Liability Company (LLC) can be a complicated process, but it is possible. It requires the necessary legal documentation and adherence to state laws to ensure that the removal is valid and legally binding.
How do I remove myself from a corporation? ›
You simply resign. Submit a written statement to the board of directors informing them of your resignation and its effective date. Resigning won't cut off anyone's right to try and sue you for wrongful acts you committed while you were an officer.
What happens if you dissociate from an LLC? ›
A dissociated member does not have any right to participate in the management or operation of the LLC. The dissociated member does not have any voting rights in the LLC. A dissociated member no longer has any fiduciary duties to the LLC.
What is the difference between dissociation and dissolution of an LLC? ›
“Dissociation” occurs when any partner ceases to be involved in the business of the firm, and “dissolution” happens when RUPA requires the partnership to wind up and terminate; dissociation does not necessarily cause dissolution.
How do you separate a person from a business? ›
How to Separate Your Personal Life from Business
- Define Your Boundaries. People play a number of roles in their lifetime. ...
- Set a Specific Time of Hours for Work. ...
- Establish Job Descriptions. ...
- Have Distinct Social Media Accounts. ...
- Learn the Art of Delegation. ...
- Conclusion.
To convert a multi-member LLC to a single-member LLC, you'll need to file Form 8832. Form 1065 will no longer be required, however, you will need to check the last year it was a multi-member LLC on the final box when submitted.
Does an LLC separate personal from business? ›
An LLC is a business that is completely separate from the owners' personal financial affairs. Funds pass through the LLC from the business to the owners, who then report earnings to the IRS as income like they would if they worked for any other company.
The usual method of involuntary removal is a vote by the other members followed by a buyout based on the departing member's interest or share in the company. Member buyouts may be addressed in a buy-sell agreement or another internal governing document.
What happens if one partner wants to leave an LLC in Texas? ›
No, under Texas law, an LLC member cannot voluntarily withdraw or be expelled from an LLC. There are three primary ways a member can be removed from a Texas LLC—by complying with the operating agreement or by seeking voluntary or involuntary dissolution.
What is the most common form of ownership? ›
Sole Proprietorship. This is the simplest and most common form used when starting a new business. Sole proprietorships are set up to allow individuals to own and operate a business by themselves. A sole proprietor has total control, receives all profits from, and is responsible for taxes and liabilities of the business ...
Do I need to notify the IRS if I close my business? ›
You must file Form 966, Corporate Dissolution or Liquidation, if you adopt a resolution or plan to dissolve the corporation or liquidate any of its stock. You must also file your corporation's final income tax return.
How do I disconnect a business owner? ›
Make the business case.
So, it's essential that you give yourself, and your team, license to shut down. Make sure that everyone agrees to the same rules: no weekend work, no emails, no “emergency” calls (unless it's really an emergency). And, if you're the boss, it's even more important that you model this behavior.
Do I need to cancel my EIN if I close my business? ›
The IRS cannot cancel your EIN. Once an EIN has been assigned to a business entity, it becomes the permanent Federal taxpayer identification number for that entity. Regardless of whether the EIN is ever used to file Federal tax returns, the EIN is never reused or reassigned to another business entity.
What is dissociation from an LLC? ›
Dissociation may be voluntary or involuntary and may not necessarily involve the member's active decision to leave the company. Dissociation often triggers the member's complete disassociation from the LLC, including the termination of their membership interest and rights within the company.
What is it called when a member voluntarily withdraws from an LLC? ›
An LLC owner might decide to withdraw of their own accord (voluntary dissociation). For example: They may wish to retire, They may resign because of conflicts with other members.
What does it mean to withdraw from an LLC? ›
A withdrawal of a corporation or LLC merely removes your company's right to do business in a particular state but the company may continue to exist and do business elsewhere.
What is withdrawal from a limited liability company also known as? ›
Members of a limited liability company (DO NOT, or DO) have the right to withdraw from the entity. Withdrawal from a limited liability company is also known as (DISSOLUTION, or DISSOCIATION).
