[WSBARP] LLC Interest Sale and Taxes

[Kevin Bukoskey]

Hi Listmates,


When closing a purely 100% interest sale in an LLC that owns no real property, at closing are there any taxes that need to be paid on the purchase price or otherwise through escrow? My understanding is that because this is a sale of LLC membership interests and the LLC owns no real property (it leases only), the transaction is an equity sale and is not subject to Washington sales tax, REET, or any tax on inventory or COGS, and no tax is calculated or collected through escrow, correct?



I know seller has to be up to date with their state taxes (B&O, sales tax, etc.) and usually provide a tax status letter through DOR, but isn’t that it?



Thanks.


Kevin A. Bukoskey, Esq., JD, MBA

Attorney

GOURLEY LAW GROUP

THE EXCHANGE CONNECTION

SNOHOMISH ESCROW

P.O. Box 1091

Snohomish, WA 98291

PH:  (360) 568-5065 (800) 291-8401

Fax: (360) 568-8092



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