New Motorcycle shop

[Lance Groff]

I am purchasing a motorcycle repair shop that specializes in vintage bikes. Currently it is listed (made up name). Red Fern motorcycles LLC. the current owner has a great reputation and I want to keep the name. Now I spoke to my cousin who owns a insurance company which is also an LLC. He said I won't really be able to do that you cant just dissolve it and the name will be immediately available. I would have to do Lance Groff LLC operating Red Ferm motorcycles. He recommended I ask the owner to let me just buy the LLC. I believe he said he articles of incorporation or something. He did this when he bought his firm to keep the name for customer retention. Then a few years later he changed it once established. Just trying to see what my options are. He also said that would allow the current owner quickbooks to transfer to me. On the down side he said if something occurred to a motorcycle the current owner worked on under Red Fern motorcycles and I took that over I could be liable even though I was not the owner then. I thought maybe just changing the name a little bit top Red Fern Cycle Works. since everyone knows and refers to it as Red Fern, not red fern motorcycles. Plus the website is redferncycles.com. which is conveying to me in the sale. Any advice is appreciated. My cousin did say it was super easy to buy the LLC from the previous owner of his business, costed like $150. didn't need a new EIN. and just drafted a word doc they both signed and it was done. He mentioned to me too that if I form a new LLC new businesses get dinged sometimes. Not sure what he meant by that..

 

[adjusterjack]

Any advice is appreciated.

The advice is to stop talking to your cousin and hire a business attorney and CPA to guide you through the purchase process.

 

[flyingron]

The short answer is that the LLC can be transferred. The more complete answer is that there are a number of things that must be done in the process of that and establishing your new business, which @adjusterjack gave you good advice on.

 

[zddoodah]

Currently it is listed (made up name). Red Fern motorcycles LLC. the current owner has a great reputation and I want to keep the name. Now I spoke to my cousin who owns a insurance company which is also an LLC. He said I won't really be able to do that

Just because your cousin owns an insurance company which is also an LLC doesn't mean he knows what he's talking about. He's wrong about this. You most certainly can buy the existing LLC, including the rights and goodwill that come with the name.

He recommended I ask the owner to let me just buy the LLC. I believe he said he articles of incorporation or something.

Yikes. Please do not take legal advice from your non-lawyer cousin. His "recommendation" to buy the LLC is directly contrary to him telling you that you "won't really be able to" keep the name. Please seek advice from a local business attorney. If you follow your cousin's bad advice, you're likely to mess things up.