Legal Question in Business Law in Texas
Trying to get buisness changed to a safer entity.
My uncle owns a business and it is set up in a sole proprietorship. He is aging and had a heart attack last year. He had no insurance and accumulated allot of hospital bills. We want to remove the business out of his name and put it in a safer entity. If we do this, we would be committing fraud. I know there is another way we can get this done. I have been reading on LLC's, corporations, LP's. What options do we have. We intend to pay the hospital back, mean while we want to be safer and more prepared for the future.
1 Answer from Attorneys
Re: Trying to get buisness changed to a safer entity.
Depending on your uncle's circumstances, and the type of liabilities he has, he'd probably need to do an asset purchase agreement. In that agreement, he'd be selling the business assets to the new entity. He could then use the sale proceeds to pay whatever liabilities (hospitals, liens, taxes, etc.) that he had.
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